(Yicai) July 4 -- Shenzhen, one of China's four first-tier cities, saw home sales surge 39 percent in the first half of the year despite the country's overall sluggish real estate market.

The number of home sales in Shenzhen topped 51,104 in the six months ended June 30, according to data from the Leyoujia Research Center. New home transactions soared 42 percent to 21,873 from a year ago, with four projects selling out on launch day, while some 29,231 pre-owned houses changed hands, up 37 percent.

In addition, Shenzhen's new home inventory turnover period dropped to the lowest at the end of the first half since 2021 due to increase in sales as well as less new supply.

Shenzhen is one of the Chinese cities with the biggest rebound in house sales in the period, Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, told Yicai. The significant drop in new home supply and favorable policies in the real estate market have increased buyers' confidence, accelerating inventory reduction, Li noted.

The number of new listed homes in Shenzhen plunged 45 percent to around 14,983 in the first six months of the year.

In addition, only 25,661 new homes were listed for sale in the city as of June 30, implying the absorption period dropping to seven and a half months, the lowest level in four years, according to data from the Shenzhen Beike Research Institute.

The second-hand home market in Shenzhen was also active, with average monthly transactions reaching 5,851, exceeding the industry-recognized threshold of 5,000, according to the Shenzhen Real Estate Intermediary Association. Sales peaked at 7,703 in March and stood at 5,546 last month.

After the Chinese New Year holiday in February, the number of second-hand houses listed for sale in Shenzhen began to increase. In addition, the figure rose 2.9 percent to 73,858 as of the end of last month from the previous one.

Home sales in Shenzhen will likely maintain a stable year-on-year growth in the second half of the year, Li said. The new housing market will primarily be lifted by demand for higher-quality homes, while the second-hand market will continue to receive strong support from low-budget first home buyers, Li added.

Editors: Tang Shihua, Martin Kadiev