On February 23, 2021, the Shenzhen Municipal Housing and Construction Bureau issued the “Work Plan of the Shenzhen Municipal Housing and Construction Bureau on Carrying out Special Inspections on the Application of Reference Prices for Second-hand Housing Transaction by Real Estate Brokerage Agencies” (hereinafter referred to as the “Work Plan”). The “Work Plan” pointed out that in order to implement the municipal government’s real estate regulation and control work deployment, implement the “Notice of the Shenzhen Municipal Housing and Construction Bureau on the Establishment of a Reference Price Release Mechanism for Second-hand Housing Transaction” (Shenjian Real Estate  No. 2), and implement real estate The management of the listing price of second-hand housing by brokerage agencies will further regulate the practice of relevant personnel and formulate work plans.
The “Work Plan” stated that it is necessary to carry out special inspection actions to severely investigate and punish the behavior of real estate brokerage agencies’ second-hand housing listing prices exceeding the transaction reference price, guide rational transactions, stabilize market expectations, and promote the stable and healthy development of the Shenzhen real estate market. The “Work Plan” clarifies that there are two main aspects of inspection content. One is whether the listing price of second-hand housing issued by real estate agencies in stores, websites, and related online platforms exceeds the reference price of second-hand housing transactions; the second is that real estate agents use WeChat, QQ, and other networks Whether the second-hand housing price published by the platform exceeds the reference price of a second-hand housing transaction.
In the specific division of responsibilities, the “Work Plan” requires the housing construction bureaus of all districts to organize and implement special inspections within their jurisdictions; to carry out inspections in conjunction with intermediary associations; if violations of laws and regulations are found during inspections or through other channels, timely investigations and evidence collection are required. Identify and review work; penalize real estate brokerage agencies and brokers suspected of violating laws and regulations in accordance with relevant regulations; establish a regular reporting system to summarize and report the progress of special work in a timely manner. In addition, all real estate agencies and brokers are also required to conduct self-inspection and self-correction, and report the delisting of houses to the Shenzhen Real Estate Agency Association before February 26, and require the Shenzhen Real Estate Agency Association to carry out training and require all real estate agencies Brokerage agencies and brokerage personnel strictly enforce the reference price of second-hand housing transactions.
This shows the determination and efforts of the Shenzhen government to guide the second-hand housing market back to rationality. On February 8 this year, the Shenzhen Municipal Bureau of Housing and Construction issued a document to establish a second-hand housing transaction reference price release mechanism, and at the same time released the second-hand housing transaction reference price of 3595 residential communities in Shenzhen. Since there is a large price difference between the reference price of second-hand housing and the real transaction price obtained by the public, which is generally about 20% of the actual transaction, how this price release mechanism will affect the direction of the second-hand housing market has attracted much attention. On the day when the transaction price was released, the Shenzhen Municipal Bureau of Housing and Urban-Rural Development asked the five major intermediaries in Shenzhen to remove the listings that exceeded the transaction price of second-hand housing, all of which were displayed as “no data yet.”
Although the relevant listings are removed on the official website, it does not affect the normal viewing of intermediaries. They usually publish the real purchase price to buyers through private communication. However, this “Work Plan” clearly requires the inspection of intermediary personnel. Whether the price of second-hand housing published through WeChat, QQ, and other online platforms exceeds the reference price Spark Global Limited.
article links：Shenzhen Bureau of Housing and Urban-Rural Development
Reprint indicated source：Spark Global Limited information