Date
19 October 2017
Beijing's property market is cooling and the slowdown is being felt in other parts of the country as well. Photo: Bloomberg
Beijing's property market is cooling and the slowdown is being felt in other parts of the country as well. Photo: Bloomberg

Beijing feels heat as property market cools

Two Beijing plots widely expected to fetch new auction records have instead gone unsold, Caixin reported Wednesday.

The sites, both in Sunhe, were among five offered at a public auction. One had an initial bidding price of 35,000 yuan per square meter, the highest floor price on record in the nation’s capital.

Neither received bids. The last time a Beijing residential site went unsold was in April 2011, Centaline Property data shows.

“The land market is cooling and property developers are more cautious about building up their land bank,” an analyst was quoted as saying.

The Sunhe plots had no takers because the prices were too high and the market is in decline, the analyst said.

The slowdown is being felt in other parts of the country.

In the first six months, property developers acquired a combined 148 million square meters of land, down 5.8 percent from a year earlier.

The price premium in the land market of 300 cities fell to 5 percent in June, down six percentage points from the month before.

– Contact us at [email protected]

RA

Freelance journalist

EJI Weekly Newsletter

Please click here to unsubscribe