Situated in Guangdong Province, China, Shenzhen also borders Hong Kong, placing it in a unique trading position. Shenzhen is a thriving technology hub and the headquarters of many international and Chinese businesses, including Huawei Technologies and Tencent Holdings.
Shenzhen has experienced stellar economic growth since the 1980s when it was designated one of China’s five special economic zones. It attracts significant foreign direct investment, particularly research and development for high tech ventures and start-ups.
It will be a key contributor to the Chinese government's Greater Bay Area scheme that will link the cities of Hong Kong, Macau, Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing into a world beating integrated economic and business hub.
Infrastructure projects to connect different areas of the hub have already begun. They include the Guangzhou–Shenzhen–Hong Kong Express Rail Link, which opened to the public in September 2018 and the Hong Kong–Zhuhai–Macao Bridge, a 55 km bridge/ tunnel system, which opened in October 2018.
Shenzhen has one of the highest expected GDP growth rates for 2019 of over 8% and the population is set to continue growing. A shortage of residential land has led to an increase in urban housing developments, but housing completions last year totalled 41,731, lower than the average annual completions over the last decade.
House price growth in 2018 slowed sharply due to pressure created by cooling measures, such as increased down payment rates on loans from 30% to 40%. Annual property transactions also appear to be declining.
Shenzhen is expected to demonstrate further results following new measures that were introduced in August 2018 to reduce speculation in the housing market. These included restraints on corporation residential property purchases and enforced wait periods before homes can be re-sold.