Chinese mainland media outlet 163 reported on September 23 that the consecutive entry of 20 luxury houses into the foreclosure market has heated up Shenzhen’s real estate market.

These 20 sets of foreclosed properties put up for auction this time are from the Baoneng City Garden East District urban area.

The first property lot auction was at the Shenzhen Baoneng City Garden.

In a crowd of nearly 110,000 people, the first batch of 20 suites was successfully auctioned, with a total transaction price of almost almost $42 million (300 million yuan), exceeding the total starting price of about $740 thousand (5.3 million yuan).

There are four sets of houses of 138 square meters each. The starting prices are $1.8 million (13 million yuan) and a maximum of $2.8 million (nearly 20 million yuan).

According to industry insiders, for a foreclosed villa priced at $1.4 million (10 million yuan), the deposit only needs to be $98 thousand (700,000 yuan) to $141 thousand (1 million yuan).

Some buyers involved in the luxury foreclosure case of more than $1.4 million (10 million yuan) told reporters that compared with the second-hand housing market, new owners could buy properties more cost-effectively in the foreclosure market with the same budget.

One netizen commented that with $844 (6,000 yuan) a month, the sight of poverty took him out of the illusion of owning these luxury homes.

In fact, since the beginning of this year, Baoneng City Garden, which has been mortgaged many times, has frequently stirred up the Shenzhen property market.

The Leyoujia Research Center has compiled data from public auction platforms such as Alibaba Auctions and court notices.

The data shows that from January to August this year, the transaction volume of foreclosures in Shenzhen was 673.

According to data from the Shenzhen Shell Research Institute, the transaction negotiation rate in the first half of this year was 5.9%. 

The data also said that the average price of new second-hand housing listed in Shenzhen in the first half of 2022 fell 0.8% yearly and 1.5% month-on-month.
However, He Qianru, director of the Midland Real Estate Research Center, believes it is too early to say whether the Shenzhen property market will grow.

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