A mansion in Shenzhen, initially valued at 11.5 million yuan (US$1.8 million), was left unsold even after a rare 40% price cut.

With a total area of 221.9 square meters, the luxury home located at Longgang District was purchased in 2017 at 15 million yuan. The asking price stood at 11.5 million yuan when it was auctioned in May this year, but there were no bids on the lot. It further plummeted to 9.2 million yuan 20 days later, but still failed to find a new owner.

An industry insider attributed the rare sale failure to the remote location of the property. The fact that the mansion was put on compulsory auction also ran the risk of delay in handover, he added.

Kevin Tsui, an associate professor of economics at Clemson University in South Carolina, said the owner might have misjudged the market.

Shenzhen’s second-hand property trading has been slackening since February. Official figures recorded 3,027 handovers in May, 64.6% less year-on-year.

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