Hong Kong’s property market is crazy, but Beijing’s is crazier.
A subdivided unit in the capital city near the National Center for the Performing Arts, dubbed The Giant Egg, was sold for 2.5 million yuan (US$384,00) in a hotly contested auction.
A mere 6.7 square meters, or about half the size of a standard parking lot in Hong Kong, the Xincheng District home was valued at 3,731 yuan per square meter.
To put that into perspective, the Beijing unit was sold for over HK$40,000 per square foot, double the price of a nano flat in Tai Po or Yuen Long, or about the ongoing market price per square foot of a Grade A office space in Central.
It was reported that close to 50 people participated in Tuesday’s auction by online retailer JD.com, which started at 600,000 yuan before the hammer was banged at 2.5 million yuan.
Built in 1949, the property is at No. 3 Tong Jing Da Yuan. Its previous owner failed to pay a bank loan so it was forfeited and put up for sale.
The winning tender is about double the current market price in the neighborhood, according to an agent.
Of course, we are talking here of a neighborhood that is near Zhongnanhai, the most powerful district in China’s most powerful city where the top Chinese leaders work, and also about 10 minutes’ walk from Tiananmen Square.
However, the physical state of the property is decrepit. There is no washroom or toilet, only a sink. The walls and floors are dirty and stinky, according to CCTV.
The sky-high price for the tiny unit went viral on social media with netizens appalled that such a hovel could fetch a king’s ransom.
Some pointed out that the buyer probably had no intention of living there but acquired it for speculation, believing that the site would be taken over for revitalization.
Others said the property was definitely not for poor people, and that the price might even go higher.
But who ever said living is easy in a small place in one of the world’s largest countries?
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