Shenzhen real estate project kicks off post-holiday rework with the first price cut, with a single unit dropping by over one million yuan. Industry insiders: "Price reductions to boost sales" still work.

Recently, the Junyue Mingdu project located in the Bao’an Xinan area of Shenzhen has become one of the most popular housing viewing projects in the Shenzhen market, heavily promoted by real estate agents.

On the afternoon of February 27, when reporters from the Daily Economic News visited the site, many agents were stationed around the project to attract customers. At the sales center, despite it being a weekday, there were still many visitors viewing the properties.

Many prospective buyers were attracted by the significant discounts offered. After the Chinese New Year, the project launched large-scale promotional activities under the guise of offsetting work with housing, becoming the first “price reduction for volume” new project in Shenzhen after the 2026 Spring Festival.

At the site, reporters learned that the main unit type is a 89㎡ three-bedroom, with opening prices directly reduced by 800,000 to 1.15 million yuan, and some lower-floor units priced just over 5 million yuan.

Among them, the mid-to-high floor 89㎡ units are mostly priced between 5.2 million and 5.3 million yuan after discounts, with unit prices ranging from 58,000 to 59,000 yuan per square meter; some lower-floor units are priced between 5 million and 5.1 million yuan, with unit prices around 56,000 to 57,000 yuan per square meter.

Junyue Mingdu site photo Source: Meiri Daily reporter Chen Ronghao

It is worth noting that when Shenzhen Bao’an Junyue Mingdu opened in July 2025, the recorded average price was 82,200 yuan per square meter, even after discounts, the unit price reached about 73,000 yuan per square meter. Now, under the guise of offsetting work with housing, prices have been significantly lowered again.

Notably, the original developer of the project was not China Cinda but Zhongnan Construction, which led early development. Later, Zhongnan Construction faced liquidity issues, and China Cinda officially took over in February 2023. China Cinda, through its subsidiary Cinda Capital, established a relief fund with a total scale of 3.151 billion yuan, with Cinda’s investment of 2.551 billion yuan, completing equity restructuring and asset revitalization of the project company Shenzhen Jinzhongsheng Investment Co., Ltd.

“Since Q4 last year, the decline in Shenzhen second-hand home prices has been more significant than new homes, and customers are clearly shifting to the second-hand market. This move by developers helps recover some diverted customers and accelerates sales,” said He Qianru, Director of the National Research Center at Midland Realty, on February 28.

“Maximum direct discounts of over one million yuan” to seize the market

Recently, the Bao’an Junyue Mingdu project has been heavily promoted by Shenzhen agents, and “discounts exceeding one million yuan” have become a key feature of this development.

Image source: Screenshot of agent’s social media

On the afternoon of February 27, after recommendations from agents, reporters visited the project site. The sales office indicated that after the promotional offers were launched, market response was quite good, and sales pace significantly accelerated.

According to the on-site sales consultant: “The project started offering work-offset discounts on the ninth day of the Lunar New Year, and has been operating until midnight for several days. Many clients have come overnight to view and reserve homes.” The developer has a clear goal for this round of price cuts, aiming to clear the remaining about 100 units after the holiday for quick capital recovery.

Junyue Mingdu sales office photo Source: Meiri Daily reporter Chen Ronghao

Price advantage is the core reason for the project’s volume growth.

The sales consultant calculated that, based on a 530,000 yuan price for a 89㎡ mid-to-high floor unit, the discounted unit price is about 59,000 yuan per square meter, directly down 15,000–20,000 yuan per square meter from the initial opening price. With a 20% down payment (the minimum down payment can be as low as 15%), the initial payment would be 1.06 million yuan, and with a 30-year mortgage, the monthly payment would be about 18,000 yuan.

“Currently, the project implements a 100,000 yuan deposit lock-in policy to secure the discount quota, with subsequent procedures following the normal new home transaction process, including online signing and loans,” said an agent accompanying the viewing.

The reporter noticed that before launching discounted units, overall absorption of the project was not very high. The project initially opened on July 5, 2025, but according to Shenzhen real estate information platforms, as of February 27 this year, only 52 units had been recorded in contracts or filings, with an overall absorption rate of about 20%.

After launching discounted units, according to agent promotions, the project’s daily sales reached about 50 units after the work-offset discounts. This means that the highest daily sales after the price reduction nearly matched the sales volume of the past half-year.

The project is developed by Shenzhen Jinzhongsheng Investment Co., Ltd. According to Tianyancha data, the company was established in 2017 with a registered capital of 10 million yuan. The legal representative, chairman, and general manager is Lu Jianfei.

From the perspective of equity structure, the company is held by Wuhu Xinzho Sheng Investment Partnership (Limited Partnership) with 99% and Cinda Capital Management Co., Ltd. with 1%, with China Cinda as the ultimate controlling entity.

China Cinda’s “backstop” and takeover lead to price cuts for volume

What is the level of a unit price range of 56,000–59,000 yuan per square meter in Shenzhen and Bao’an Xinan area?

“This price is quite attractive in Shenzhen, especially since it’s in the Xinan area. Surrounding new and quality second-hand homes generally range from 70,000 to 90,000 yuan per square meter. Nearby Dayue City Yinyue Apartment has a discounted unit price of about 39,000–45,000 yuan per square meter, with an average of 42,000 yuan per square meter. There’s at least a 10,000–20,000 yuan difference compared to the surrounding second-hand homes,” said Liu Wentao, a Shenzhen real estate agent, on the morning of February 28.

Liu Wentao added that even within the entire Shenzhen area, this price advantage is quite evident.

It’s worth noting that the project was originally part of Baocheng 25 District and Xinan 25 District’s Urban Renewal Phase I C project, initially developed by Zhongnan Construction.

Since 2021, Zhongnan Construction has faced liquidity crises, with overdue debts and frequent project suspensions, causing development stagnation.

In February 2023, China Cinda injected 2.551 billion yuan to take over and revitalize the assets, becoming the main developer, significantly reducing the risk of project abandonment. This is another problematic project in Shenzhen, after Zhongzhou Yingxi, backed by China Cinda.

In terms of the project’s physical layout, Junyue Mingdu covers about 11,300 square meters, with a total construction area of 143,000 square meters. It plans for only two 31-story residential buildings and two office buildings, with 256 for-sale units, including affordable and resettlement housing.

On-site visits reveal that the project is about 800 meters from Lingzhi Station on Lines 5 and 12, adjacent to China’s first COFCO Dayue City in South China. Within 500 meters are Jian’an Primary School, Xinan Middle School, and other educational institutions, with Bao’an Traditional Chinese Medicine Hospital just across the street.

While price and location are major advantages, the project also has drawbacks: a high plot ratio of 9.69, a small community scale, limited green space, and a residential ratio of 3 elevators for 7 units or 4 elevators for 6 units, resulting in relatively high overall residential density.

Junyue Mingdu’s elevated garden area Source: Meiri Daily reporter Chen Ronghao

After China Cinda’s intervention, instead of maintaining high prices, the strategy has been to “reduce prices for volume and quick returns.” Industry insiders mention that for relief entities, quickly recouping funds allows for subsequent project renovations and land auctions, rather than pursuing high profits on a single project. This is a common approach for asset management companies revitalizing distressed assets.

He Qianru noted that distressed projects generally do not differ much from normal market projects, but the financial pressure on troubled projects is greater, making rapid sales and capital recovery especially important.

Zou Shaowei, senior researcher at Shenzhen Centaline, told reporters that in Shenzhen’s current market, aside from luxury products known for scarcity, price remains the biggest factor influencing buyers’ decisions in both Bao’an Nanshan and the demand-driven areas of Guangming, Longgang, and Pingshan. Therefore, the “price reduction for volume” strategy remains viable.

According to Shenzhen Centaline data, as of February 27, the city’s new home sales totaled 1,215 units, and second-hand homes transferred totaled 2,248 units in that month. Among 265 listed new residential projects, the minimum down payment ranged from 200,000 to 8 million yuan, with nearly 80% of projects requiring a minimum down payment of under 1 million yuan to “get on the property ladder.”