Core Viewpoint - The real estate market in Shenzhen is showing signs of recovery, with significant demand for both affordable housing and commercial properties, driven by favorable policies and economic growth [1][3]. Group 1: Affordable Housing Market - The first affordable housing project of the year, Shen Tie Ming Zhu Fang, sold out on its opening day, indicating strong demand [1]. - The project had 181 units available, with 662 qualifying households, resulting in a subscription ratio of approximately 1:3.6, reflecting the high demand from first-time homebuyers for reasonably priced housing [2]. - The overall new and second-hand housing market in Shenzhen saw over 10,000 net signed transactions in January, with second-hand housing transactions increasing by 25% year-on-year and 7% month-on-month [1]. Group 2: Commercial Property Market - In January 2026, the transaction volume of new commercial properties accounted for 35.5% of total new housing transactions, while second-hand commercial properties made up 20.5% of total second-hand transactions, both showing increases compared to the 2022 peak [2]. - Small-sized apartments in prime locations are gaining popularity due to their low entry barriers and high rental yields, with some properties showing rental returns exceeding 4% [2]. Group 3: Policy and Economic Environment - A series of policy incentives have been introduced in early 2026, including a reduction in the value-added tax rate on property transactions from 5% to 3% for properties held for less than two years, and adjustments to commercial property loan requirements [3]. - Shenzhen's GDP grew by 5.5% in 2025, with strong industrial performance contributing to improved employment and income expectations, which is expected to boost real estate demand [3]. - The rental yield in Shenzhen has rebounded to approximately 1.8%, surpassing the annual interest rate of large bank deposits, indicating a favorable investment environment [3].

Core Viewpoint - The Shenzhen real estate market is showing signs of recovery, with significant increases in both new and second-hand housing transactions, indicating a shift from hesitation to action among buyers [1][6]. Group 1: Market Performance - The first affordable housing project of the year, Shen Tie Ming Zhu Fang, sold out on January 31, 2026, reflecting strong demand for affordable housing [1]. - In January 2026, over 10,000 new and second-hand homes were registered, with second-hand home transactions increasing by 25% year-on-year and 7% month-on-month [1]. - The market has entered a steady recovery phase, with second-hand home transactions exceeding 5,000 units for ten consecutive months since March 2025 [1]. Group 2: New Housing Supply - The supply of quality new housing projects has increased, with notable sales such as Zhongxin Xinyue Bay achieving nearly 80% sales and Houhai Xijia Yuan selling out on the opening day [2]. - The affordable housing project Shen Tie Zhi Ye Ming Zhu Fang, with units ranging from 68 to 88 square meters, was fully subscribed on the same day it was released, indicating high demand from first-time buyers [2]. Group 3: Commercial Real Estate - In January 2026, commercial real estate transactions accounted for 35.5% of new home sales, and 20.5% of second-hand home sales, showing an increase from the peak in 2022 [5]. - Small-sized apartments in prime locations are favored for their low entry barriers and high rental yields, with some properties showing rental returns exceeding 4% [5]. Group 4: Policy and Economic Support - A series of favorable policies have been introduced in 2026, including a reduction in the capital gains tax for properties held for less than two years and adjustments to commercial property loan requirements [6]. - Shenzhen's GDP grew by 5.5% in 2025, with strong industrial performance, which is expected to improve employment and income expectations, further boosting real estate demand [6]. - Rental yields in Shenzhen have risen to approximately 1.8%, surpassing the annual interest rate of large bank deposits, indicating a favorable investment environment [6].