China's Real Estate Frenzy Is Back as Shenzhen Prices Surge 50%

  • Investors flocking to property to as stocks have tumbled
  • Buyers throng agents in Shanghai, city officials urge calm

Cranes operate on buildings under construction near commercial and residential buildings in the Futian district of Shenzhen.

Photographer: Brent Lewin/Bloomberg
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After getting burned by the bursting of China’s stock-market bubble, Liu Yihui is seeking salvation from the country’s latest investment mania: big-city properties.

The 35-year-old civil engineer dumped his equity holdings after losing 40 percent last year, using the proceeds to buy a 5 million yuan ($763,464) apartment in Shenzhen. Prices in the southern business hub have surged more than 50 percent over the past year, the fastest pace since at least 2011.