Shenzhen’s top-level bloodshed may become a nightmare for real estate developers?

Shenzhen has seen property prices climb over the past few decades, and the authorities have been adjusting land one after another to increase the supply of residential land in the hope of curbing soaring prices from the supply side level. However, the recent bloodshed at the top of Shenzhen is suspected to be related to property speculation, which is feared to cause concern among developers and business owners.

Shenzhen’s rapid economic development, the real estate market is very hot, last year was the central government as a “model city”, but in contrast, the neighboring Hong Kong because of the anti-sending campaign, the Hong Kong version of the National Security Law introduced, in the eyes of international investors reputation decline.

Foreign media “Reuters” recently reported that in the essence of Shenzhen, such as Nanshan District, some real estate prices have surpassed the northern part of Hong Kong, attracting the attention of real estate developers and will become the residential area of Shenzhen workers, Hong Kong may gradually become the “backyard” of Shenzhen.

Although Shenzhen’s property market is hot, the recent leadership change fears to cause concern for developers and business owners. The station reported on the 27th that eight officials, including the mayor of Shenzhen, the vice mayor and the director of the city’s Supervisory Commission, had left the post, and Qin Weizhong, vice governor of Guangdong Province, replaced Shenzhen Mayor Chen Rugui as acting mayor of Shenzhen.

External analysis of this reorganization is not in line with the usual personnel changes, may be related to the local government’s ineffective regulation of the property market. The central government has stressed in recent years that “housing is not speculative”, but the price of housing in Shenzhen is still rising, previously rumored that the Shenzhen real estate blogger “deep house reason” irregular speculation, triggering the local housing construction, public security, banking and insurance supervision and other seven departments to launch a joint investigation. Another media analysis, the director of the Municipal Supervisory Commission, the city intermediate court president and the city procuratorate president was replaced, do not rule out that the political and legal system consolidation, anti-corruption investigation related.

In March this year, the Shenzhen Housing and Construction Bureau issued the “Shenzhen Housing and Construction Bureau on further strengthening the city’s commodity housing purchase eligibility review and management notice” to implement the “house is used to live, not for speculation” positioning, if there are false speculation of the offenders can be transferred to the public security organs.

Shenzhen introduced the strictest purchase restrictions in October last year, limiting the number of homes that local families can purchase in the hope of curbing housing prices. However, according to the data of Anjuke, a Chinese property information service platform, the average price of new houses in Shenzhen in April was about 44,000 yuan per square meter, while the per capita disposable income of Shenzhen residents last year was less than 65,000 yuan, according to the National Bureau of Statistics. Prior to this, data from China’s real estate industry player E-House showed that the price of an apartment in Shenzhen was about 43.5 times the average annual salary of residents.