Unit price of luxurious condos in an upmarket development by the state-owned Chinese Resources near Shenzhen Bay fetch up to 120,000 yuan per square meter. Photo: Supplied

A realty developer in Shenzhen reportedly collected about 15 billion yuan (US$2.14 billion) almost overnight at the end of October, when people nearly tripped over each other trying to snap up homes at a luxurious residential development in the city.

It was reported that developer Shum Yip Group, which is ultimately owned by the Shenzhen government, required prospective homebuyers to deposit five million yuan to be eligible for a “lucky draw” of its 192 homes that were up for grabs.

The sale attracted more than 10,000 customers and close to 3,000 of them agreed to make the hefty down payment that did not guarantee they would be allocated a unit.

The average asking price of the condos and duplexes at the upmarket development, named Sky Park (深业中城) and located in Shenzhen’s downtown Futian district, was set at 150,000 yuan per square meter.

However, there was a rumor that a price hike was on the way, as the developer could simply dictate the price amid a frenzy for expensive homes. Deep-pocketed residents rushed to get aboard due to expectations of further price hikes.

An artist’s impression of the Sky Park residential development. Photo: Handout

The much sought-after homes in the development are cloistered in verdant greenery and command views of and access to an esplanade in a salubrious neighborhood in the city and the children of owners and tenants are guaranteed places at some of the best public kindergartens and primary schools in the tech boomtown.

The sizes of the homes range from 132 to 396 square meters, meaning one has to shell out no less than 15 million yuan to own a flat there.

Shenzhen will become a global model city and a new financial center, according to a new masterplan by Beijing. Photo: Xinhua

Also in October, two investors from Shanghai bought 103 flats at a residential development in Shenzhen’s Longgang district, and another buyer splurged 900 million yuan in an en bloc transaction of all units of an entire building at a project developed by China Evergrande.

It was said that the VIP buyer was a friend of the wife of Xu Jiayin, the founder of Evergrande, and she is now the landlady of 500 flats in the building and will soon lease all the units out to IT engineers and executives who work in the nearby CBD.

Observers say the still buoyant home market in Shenzhen as well as in other top-tier cities including Beijing and Shanghai is proof that many buyers are still flush with cash and are eager to invest despite signs indicating a slackening economy.

Shenzhen’s average home price continued to hover around the level of 80,000 yuan per square meter as of October.

Read more: Land-scarce Shenzhen erecting super-tall towers

Shenzhen property costs more than HK: report

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