Name: SCMP
Telephone: +852-2680-8888

bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Pearl Liu

One would expect a building collapse to be disastrous for home prices. But in Shenzhen prices have zoomed up instead.
Homeowners in a residential estate in the southern Chinese city where a building collapsed on Wednesday morning raised their prices by nearly 20 per cent within 24 hours of the incident, betting buyers would be willing to pay a premium in the hope that the entire estate would be razed and redeveloped.
A block of flats in the Heping Xinqu residential estate in Louhu district sank into the ground on August 28, 2019, and leaned to one side. Luckily no casualties were reported.
The 29-year-old residential scheme has more than 100 homes.
Homebuyers enticed off sidelines in Shenzhen after Beijing picks it as new economic zone
A broker said that a homeowner, who had put his flat on the market for 3.1 million yuan (US$433,300) two months ago, quickly raised the asking price by 600,000 yuan to 3.7 million yuan.
“The flats are suddenly in demand as buyers expect the authorities to provide homeowners with new flats, which will be worth much more, after they demolish other buildings and redevelop the site,” said Fion He, chief analyst at brokerage Midland Realty.
But she warned that the uncertainty over the redevelopment was quite high as there was no guarantee the Shenzhen government could make it a part of its urban redevelopment plan.




Unlike other major mainland cities, Shenzhen does not have a large land bank and urban redevelopment – demolishing old low-density buildings and building more flats – is widely seen as the answer to the city’s growing population and further development.
Data from Midland Realty showed that sellers of three out of six flats in Heping Xinqu had withdrawn their offers and the brokerage said the others were not answering calls to see if they were still interested in selling.
Meanwhile, ads for flats in the same project on other online listing platforms highlighted that the entire estate will soon be torn down as part of the city’s urban redevelopment plan.

The Shenzhen Real Estate Intermediary Association, however, issued a notice on Thursday urging its members to avoid using “redevelopment potential” as a gimmick to woo prospective buyers.
The Shenzhen government said on Weibo, China’s equivalent of Twitter, on Thursday morning that an initial investigation showed that the old building’s foundation had weakened and cracked because of years of corrosion by an underground canal.
While homes in Heping Xinqu sold for an average of 40,000 yuan per square metre, newly developed secondary homes some 10 minutes away by car, were priced at about 70,000 yuan per square metre, 40 per cent higher.




“People are taking the government’s reaction as a sign that all the flats nearby will soon be redeveloped into new homes and that this was a good time to bet on home prices increasing further in Shenzhen,” said Yan Yuejin, director of the Shanghai-based E-house China Research and Development Institution.
Last week Beijing unveiled a detailed plan calling for wide-ranging reforms to be implemented in Shenzhen that will make the tech hub a leader in terms of innovation, public service and environmental protection by 2025.
Shenzhen is ranked as the fifth most expensive housing market in the world, with an average 87 square metre flat (936 sq ft) selling for US$680,283.


How China’s fast-transforming economy can avoid painful L-shaped growth

Politburo prepared to do all that it takes in the name of growth

China consumer spending to rise in 2025, but only modestly, Bain and Kantar say

Shanghai Disneyland tightens rules on wheelchair access to curb misuse

China property

Shenzhen homeowners seize building collapse opportunity to make a quick profit, raise prices by 20 per cent

A building in the Heping Xinqu residential estate in Shenzhen’s Louhu district collapsed on Wednesday. Photo:Weibo

=== PHOTO CAPTURED FROM WEIBO === A Building in Luohu District, Shenzhen collapsed. Photo:Weibo

China using Shenzhen to hedge its bets and reduce reliance on Hong Kong as gateway to West, says long-time global markets adviser

Shenzhen is becoming increasingly important in Beijing’s plans to draw talent and international investment. Photo: Martin Chan

Interview with Water Cheung, Chief Executive Officer of Storm Harbour Securities at the Champion Tower in Central. 26AUG19 SCMP / Jonathan Wong

Looking for a used home in Shenzhen? Be prepared to pay extra as sellers want more after land sales fetch record prices

Land in Shenzhen’s Longhua area fetched a record price in a government tender last month. Photo: Pearl Liu

Local people of Shenzhen passing by a land (right land being fenced) just been sold for a record high in Shenzhen’s Longhua. 02JUL19 SCMP / Pearl Liu

Business

Property

Hong Kong & China

News

China

People & Culture

Economy

China Economy


Homeowners in Heping Xinqu residential estate raise prices by 20 per cent within a day of the building collapse
They anticipate the Shenzhen government will redevelop the 29-year-old estate



Homeowners in Heping Xinqu residential estate raise prices by 20 per cent within a day of the building collapse in anticipation of the Shenzhen government redeveloping the 29-year-old estate.


Property policies

Property investment

Shenzhen

Shenzhen homeowners seize building collapse opportunity to make a quick profit, raise prices by 20 per cent

Homeowners in Heping Xinqu residential estate raise prices by 20 per cent within a day of the building collapse They anticipate the Shenzhen government will redevelop the 29-year-old estate

Homeowners in Heping Xinqu residential estate raise prices by 20 per cent within a day of the building collapse

They anticipate the Shenzhen government will redevelop the 29-year-old estate