Beijing’s blueprint to develop Shenzhen and showcase it a centrepiece of its economic reform and attract talent could hit a major stumbling block in the form of unaffordable housing prices, say analysts.
As part of a five-year plan to build the city into a “core engine” of reform by 2025, Shenzhen has been granted greater autonomy in using rural land for development purposes. The move, which will ease land supply crunch, is aimed at reining in escalating home prices and making the city more affordable to live. It was speculated that Beijing would give Shenzhen “additional land” by allowing it to absorb some neighbouring towns into its territory, but the central government did not do so.
“Home prices take up a major chunk of the cost of