Core Viewpoint - The opening of the third queue for affordable housing in Shenzhen is a significant move aimed at expanding the target audience and accelerating inventory reduction, allowing more families to participate in the housing market [4]. Summary by Sections 1. Overview of the Third Queue - The third queue allows families with a main applicant who is a Shenzhen resident and has contributed to social insurance for five years (or three years for Shenzhen residents) to apply. If the spouse is a non-resident, they must also contribute to social insurance [2]. 2. Significance of Opening the Third Queue - Expanding the target audience base is crucial for inventory reduction, as families previously unable to apply due to non-resident status can now participate. This is expected to increase the number of applicants from outside the existing inventory [4]. - The sales data from this round will influence future policy decisions regarding the lowering of application thresholds. Strong sales may delay further reductions, while weak sales could prompt a reevaluation of requirements [5]. - The frequent sales of affordable housing, especially large projects, indicate a push to reduce inventory quickly, particularly in light of the delayed rollout of other housing policies [4]. - If remaining inventory exceeds 2,500 units post-sale, significant measures may be needed to clear stock, such as offering renovations or allowing three-person households to purchase three-bedroom units [4].

Core Viewpoint - The recent announcement regarding the adjustment of affordable housing policies in Shenzhen indicates a significant shift towards allowing broader access to these properties, potentially transforming them into regular market housing options for all buyers [1][4]. Summary by Sections Policy Changes - Shenzhen has officially opened up the purchase eligibility for affordable housing, allowing families outside the waiting list to apply if there are remaining units after initial sales [3][4]. - Previous adjustments included lowering the educational requirements for applicants and including skilled workers in the selection criteria [5]. Market Conditions - There are approximately 23,000 units of affordable housing still available for sale, with 182,359 families currently on the waiting list [5]. - Despite the high demand, many units remain unsold, indicating a pressing need to reduce inventory in the affordable housing sector [7]. Sales Performance - The sales performance of the Shan Yu Wan Garden project has been notably poor, with multiple rounds of sales yielding decreasing absorption rates [10][12]. - The first five sales rounds of Shan Yu Wan Garden showed a significant number of unsold units, with the highest absorption rate being only 34.55% [13][14]. Pricing Issues - The pricing of units in Shan Yu Wan Garden is considered too high for the target market, with two-bedroom units priced between 2.55 million and 3.16 million yuan, and three-bedroom units between 3.41 million and 4.13 million yuan [20][21]. - Comparatively, other affordable housing projects in less desirable locations have managed to sell out, suggesting that price is a critical factor in the market's response [16][21]. Market Dynamics - The majority of residential transactions in Shenzhen are concentrated in the price range of 5 million yuan or below, indicating that the affordable housing market must align its pricing strategies to meet buyer expectations [30]. - The recent policy changes are expected to influence the broader housing market, particularly as more affordable housing projects follow suit in opening up sales [32].