Shenzhen Starts to Buy up and Transform Unsold Homes to Bolster Market

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As of August, Shenzhen has 302 new residential and apartment projects for sale

Shenzhen, southern China’s tech hub, has launched a program to buy unsold homes, becoming the first of the country’s biggest cities to respond to the central government’s call to boost the market through government purchases.

The city government-owned Shenzhen Anju Group Co. Ltd. announced on Wednesday that it will start buying residential properties for affordable housing and outlined the criteria for the properties it is seeking.

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Shenzhen launched a program to buy unsold homes for affordable housing, responding to the central government's April measures to revitalize the property market.
The initiative targets entire buildings or units with proper permits, focusing on residential units up to 65 square meters, despite most new developments featuring larger units.
Funding for these purchases will mainly come from affordable housing refinancing loans, supported by a 300 billion yuan ($41.8 billion) low-interest program by China's central bank.

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Who’s Who

Shenzhen Anju Group Co. Ltd.: Shenzhen Anju Group Co. Ltd., a city government-owned entity in Shenzhen, has launched a program to buy unsold residential properties to convert them into affordable housing. The initiative aims to revitalize the property market by acquiring buildings or units with convenient transportation and well-developed facilities. Anju will negotiate acquisition prices with developers and utilize funds from affordable housing refinancing loans provided by banks to finance these purchases.

Shenzhen One Urban Renewal Group: Shenzhen One Urban Renewal Group is represented by its managing director Luo Yu, who commented on the city's housing market. He indicated that new home prices in Shenzhen have fallen by 30% to 50% from their peak before 2021 and suggested that companies are unlikely to accept significant discounts if negotiations are based on current market prices.

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What Happened When

Late April 2024：: China’s top policymakers unveiled a package of measures to revitalize the country’s ailing property market, including a proposal for local authorities to buy unsold homes and turn them into affordable housing.

May 2024：: The central bank launched a 300 billion yuan ($41.8 billion) low-interest loan program to help local authorities buy unsold homes.

June 2024：: CRIC China reported that balancing income and expenses for affordable rental housing is challenging for local state-owned enterprises, even with low-cost financing.

As of 2024-07-18：: At least 20 cities or counties have released detailed policies to buy unsold homes and turn them into affordable housing.

2024-08-01：: Shenzhen had 302 new residential and apartment projects for sale, with only about 50 offering units under 65 square meters.

2024-08-07：: Shenzhen Anju Group Co. Ltd. announced it would start buying residential properties for affordable housing and outlined the criteria for the properties it is seeking.

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