Market Overview 

The central government unveiled the new ‘comprehensive reform plan (2020 – 2025)’ (hereinafter referred to as the ‘new plan’) in October as a continuation of Shenzhen’s mission of being ‘Pilot Demonstration Zone of Socialism with Chinese Characteristics’ announced in 2019, providing greater autonomy and a higher level of all-round opening-up. Given that the new plan came at a meaningful time—the 40th anniversary of the establishment of the Shenzhen Special Economic Zone (SEZ)—Shenzhen is expected to embrace a new chapter of development.

Additionally, the new plan reinforces Shenzhen’s core engine function and central city position in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Therefore, the real estate industry is forecast to obtain new development opportunities, with demand for land, office, retail and residential sectors improving.

Land

With the support from the new plan, the availability of land resources in Shenzhen is expected to be enlarged due to more flexibility in land readjustment by the local government. Thus, current issues in the land market—disequilibrium between supply and demand of residential land and the short of supply in land for education, R&D, medical and health services—are expected to be improved or resolved. Moreover, the development of the land for the secondary and tertiary industries is anticipated to see new ways to restructure the market supply. Notably, the supply of land for the tertiary industry should increase as the new plan placed great emphasis on the tertiary industry development.