By Staff Reporter

Copyright macaonews

Shenzhen’s housing market appears to be springing back to life after the city loosened restrictions on who can buy homes, drawing in a wave of non-local buyers.

Sales of new homes rose 17 percent, to 589 units, in the week ended 14 September, when compared with figures from the week prior. Used home transactions climbed 15 percent to 1,554, according to local figures reported by Yicai Global.

The uptick followed a policy change on 5 September that scrapped limits on the number of properties residents could own in most districts of the city, and allowed outsiders to purchase up to two properties. Restrictions remain in central Futian, Nanshan, and the Xinan area of Bao’an.

[See more: Macao’s residential property transactions and prices plummeted in August]

Luohu, the district closest to Hong Kong, saw the biggest jump, according to data from Leyoujia Research Center. Home sales there leapt by more than 25 percent between 6 and 14 September, compared with the previous nine day period. Viewings are up nearly 30 percent.

Zeng Haijuan, marketing director of Shenzhen Zhongyuan’s new property sales department, said buyers were arriving from cities like nearby Dongguan, Chengdu in Sichuan province, and Changsha in Hunan, keen to secure property offering both convenience and investment potential.

As an example, she cited “A person from Dongguan bought a property in Luohu to serve as a place for his children to stay occasionally and for the parents to be close to them when they pursue an education in neighbouring Hong Kong.”

Shenzhen has followed Guangzhou, Beijing and Shanghai in loosening property controls. More cities are expected to follow suit as policymakers seek to revive the nation’s beleaguered real estate market while maintaining curbs in core urban districts to deter speculation.