Date
17 December 2017
Developers are making record bids for land plots in Beijing amid limited supply. Photo: Bloomberg
Developers are making record bids for land plots in Beijing amid limited supply. Photo: Bloomberg

Beijing land plots fetch record prices

Beijing’s land market remains hot, with five plots sold at record prices within three days in 2015, China Daily reported.

On Wednesday, a consortium comprising China Resources Land and Ping An Real Estate Co. won a large residential site in Fengtai district for 8.625 billion yuan (US$1.39 billion), making it the most expensive plot in Beijing’s history, the report said.

The price tag, 22 percent higher than the government’s opening price, represents 20,600 yuan per square meter (sq m). Excluding some apartments that will be subject to price caps, the winning bid works out to more than 50,000 yuan per sq m, the paper noted.

Just two days earlier, a consortium including The Wharf (Holdings) and China Merchants Group paid 8.6 billion yuan for two adjoining sites in Fengtai. The winning bid was 50 percent above the floor price, according to the report.

Wednesday’s deal broke the record held by a commercial-residential site in downtown Beijing’s Huajia Hutong, which was sold to Beijing Huarong Infrastructure Investment Co. for 7.46 billion yuan in August.

Mao Daqing, chief executive of the Beijing division of the nation’s second-largest developer, China Vanke Co., was quoted as saying after the latest auction that housing prices in Beijing will enter the “above 60,000 yuan (per sq m) era” in 2015.

In just three days, Beijing’s district governments, all in suburban areas, sold five plots worth 17.93 billion yuan, the report said.

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RC

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