(Yicai) Oct. 15 -- A housing project in Shenzhen has sold out on its first day of presales, becoming the first in the southern Chinese city to sell out entirely on its launch since China’s government introduced a policy package to support economic growth and bolster the real estate market late last month.

The project, located in Longhua suburban district, received 744 reservations on Oct. 13 despite having only 322 available apartments, Yicai learned from people familiar with the matter. The average price per square meter was CNY76,000 (USD10,700), with units selling for CNY6 million to CNY8.9 million (USD844,120 to USD1.3 million).

China's central bank took steps to support the property market on Sept. 24, including lowering rates on existing mortgage to levels close to those for new loans and cutting the minimum down payment on second homes. Later, Shenzhen allowed non-permanent residents to buy properties in the city and optimized its zone-based home purchase curbs, permitting eligible individuals to buy more than one apartment in non-core areas, including Longhua.

The units in the housing project also sold out quickly because of its proximity to a prestigious middle school and Shenzhen North Railway Station, a real estate agent based in the same block as the project told Yicai. The per-sqm price was also below the average for nearby pre-owned homes of CNY80,000 to CNY110,000 (USD11,260 to USD15,480), the person added.

The lifting of home purchase restrictions by the Shenzhen government further contributed to the quick sale, the agent said. In fact, under the old policy, people without the local permanent residence permit were not allowed to buy houses in large cities such as Shenzhen.

The development rights of the project were acquired in June last year by Shum Yip Group, a firm under the Shenzhen administration.

Editors: Tang Shihua, Futura Costaglione