Shenzhen has launched a new service that aims to make it easier for people to change properties and boost liquidity as housing prices in the city continue to drop.

The program, co-launched by Shenzhen Real Estate Association and Shenzhen Real Estate Intermediary Association, targets those who intend to change their residential properties for a new home.

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Under the new service, they will sign an agreement with property developers and real estate intermediaries, and set a specific period as a “protected period for agreement termination”.

According to the National Bureau of Statistics, Shenzhen’s new home prices dropped 5.5 percent year-on-year in March. Second-hand homes in Shenzhen saw their prices decline by 7.4 percent on a yearly basis

If the old property is sold within this period, they must buy a new home developed by the property company and finish the transaction procedure according to the agreement. But if the old one isn’t sold during the specified period, the agreement can be terminated unconditionally and home buyers will bear no responsibility.

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During the process, real estate agencies will prioritize home sales of their clients to help them trade their properties more efficiently.

The program also encourages property developers and agencies to offer preferential treatment, such as discounts in home prices or commissions, to their clients.

So far, 13 property developers and 21 real estate agencies have joined the program.

“The initiative is expected to help reduce inventories of second-hand homes, stabilize home prices and boost market expectations,” said Li Yujia, chief researcher at the Guangdong Planning Institute’s residential policy research center.

The key to its effect lies in buyers being able to terminate the agreement and not buy new homes without bearing any responsibility, he added.

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The launch of the program comes as Shenzhen’s residential property market is moving on a downward trajectory.

According to the National Bureau of Statistics, Shenzhen’s new home prices dropped 5.5 percent year-on-year in March. Second-hand homes in Shenzhen saw their prices decline by 7.4 percent on a yearly basis.

Contact the writer at sally@chinadailyhk.com