Shenzhen offers a luzurious alternative for people who think Hong kong lifestyles are too cramped and expensive Shenzhen's luxury home market is on a roll. The economy is booming, the population's profile is improving, and a new wave of optimism is being generated by the opening of the city's services industry under the Closer Economic Partnership Arrangement (CEPA) with Hong Kong. Real estate agents are talking about a structural improvement in the market that could run for another decade. Driving this is the simple fact that Shenzhen is increasingly being seen by outsiders -- both mainlanders and Hongkongers -- as offering the best value-for-money lifestyle in southern China. For Hong Kong residents, the attraction is obvious. Just an hour away from Central, areas like the Futian district offer apartments for a fraction of the price and many times the size of what they are accustomed to in Hong Kong. More professionals are following the trail blazed by manufacturers in seeking their fortunes across the border. Developers obviously see them as the next wave of demand for luxury homes in the city. Currently, they make up about 10 per cent of all transactions, but that is expected to grow as the two cities further integrate their economies. It's not just from the south that Shenzhen is being invaded by property buyers. Agents are also talking about an increasing number of rich investors from northern China, attracted by the booming economy, ease of access to Hong Kong, and a cleaner and greener environment. Supply is not about to take off, however. Cheng Jialong, General Manager of DTZ Debenham Tie Leung, says it is more likely that the market will grow steadily over the next 5 to 6 years. 'I think 10 to 12 per cent growth is possible,' he says. That is mostly because there remains an overhang from a building binge over the past decade. Mr Cheng says government figures show that between 1983 and 2003, a total of 950,000 units in all categories were built in Shenzhen. About 500,000 of these remain either unoccupied or have not yet been sold. By the end of this year, another 150,000 should be added to the pile. All of which is music to the ears of prospective home-buyers, of course. Prices in Shenzhen for luxury homes are considerably cheaper than in Shanghai or Beijing, and given Shenzhen's location, offer better longer-term returns as the city integrates with Hong Kong. Such broad-based indicators also leave developers at the top of the market unperturbed, as they see the profile of their customers changing rapidly. Mr Cheng says the design of luxury homes today is very different than a decade ago, driven by vast changes in living standards. 'Ten years ago, most top-end properties were villa or townhouses. But now demand has switched to apartments designed as ?homes-in-the-air',' he says. 'Today's buyers look for a healthy environment, pleasant surroundings and leisure facilities. They also take the cultural makeup of an area into consideration.' Such quality is not exactly in large supply, and those developers that have produced it are meeting strong demand. Some of the leading developments in Shenzhen have been clustered in the Futian district, the Overseas Chinese Town (???' Mr Cheng says that in the past, many buyers preferred developments by Hong Kong's better-known companies, such as Kerry Properties and Hutchison Whampoa. But that has changed as the quality and experience of the mainland developers has improved. The Shenzhen Vanke group is now the country's largest developer, producing top-quality homes for discerning buyers. The East Pacific Real Estate Development Co is another well-known local brand.