Trump's Huawei Ban is Now Impacting Shenzhen's Housing Market

By That's PRD, May 30, 2019

1 0

Trump’s Huawei ban is one of the latest moves in the ongoing US-China trade war, and the effects of the decision are starting to be held in South China’s real estate market. In Shenzhen, realtors in the Bantian area in Longgang district, which is home to Huawei’s headquarters, are feeling the impact of the growing tensions. 

201905/793px-HuaweiShenzhen.jpg
   Image via Wikimedia

In recent years Bantian has gained a reputation as an area with rising rental costs. Although the village has many older buildings, it is close to the subway, has relatively high terrain (avoiding water accumulation on those rainy days!) and of course is favored by Huawei employees for its proximity to office headquarters. Despite Bantian being around 40 minutes from the city center, the average cost per square meter is RMB57,839, which is 6% higher than average in Shenzhen. 

201905/bantian-.jpg
Image via
Weibo

South China Morning Post interviewed Chen Xiao, a Centaline property agent based in the popular area. Unfortunately, Chen has not closed a single deal throughout the month of May, which is usually his best month as Huawei pays out bonuses around this time.

Property consultancy China Real Estate Information Corp (CRIC) estimates “Huawei staff and their families are responsible for more than half of the transactions in the area, where prices have risen 11% since the beginning of 2017.” Given the current troubles that Huawei is facing, it’s no surprise that Chen’s clients are now taking longer to decide on buying property when in the past staff would simply have put down a deposit after seeing a few pictures. 

The decline in property sales is not restricted to Longgang as Centaline has also seen a decrease across all nine of Shenzhen’s districts. 

Another factor which may be contributing to decreasing demand is the shift of employees to Huawei’s new Dongguan campus. The newly erected 9-square-kilometer campus has replicated buildings and architectural styles from 12 different cities around Europe.

READ MORE: New Huawei Phone Raises Privacy Concerns with ‘Super Zoom' Function

[Cover image via Weibo]

more news

The 10 Best Things to Do This Week in Shenzhen

Your weekly guide to the best of Shenzhen.

Hidden Camera Discovered in Woman’s Dressing Room in Shenzhen

The camera was reportedly still filming when she found it.

Tourist Stabs Shenzhen Railway Employee After Missing Train

No word yet on how the tourist managed to get a knife passed Shenzhen North Railway Station’s security team…

The 8 Best Things to Do This Week in Shenzhen

Your weekly guide to the best of Shenzhen.

Falling Window Crushes Young Boy in Shenzhen

A 6-year-old boy was seriously injured in Shenzhen’s Futian district today, after being struck by a falling window at a residential complex.

All Dogs in Shenzhen Will Soon Have Microchips

Attention all dog owners in Shenzhen! Your playful pup will need to have a microchip implanted under their skin by the end of this year.

Lightweight Match Announced for UFC Fight Night Shenzhen

Lightweight match between Dong Hyun Ma and Scott Holtzman has been announced for the August 31 event.

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at ThatsShenzhen for events, guides, giveaways and much more!

7 Days in Shenzhen With thatsmags.com

Weekly updates to your email inbox every Wednesday

Subscribe

Download previous issues

Never miss an issue of That's PRD!

Visit the archives

Get the App. Your essential China city companion.