Foreign Property News | Posted by Shwe Zin Win
Beijing scored US$4.5 billion in record land sales after easing controls to prop up property market, but analysts warn that the successful sale of the 12 sites in one day is no indication of a market recoveryTwelve out of 13 land sites were successfully auctioned off by the Beijing Municipal Commission of Planning and Natural Resources, earning a total of ￥31.6 billion ($4.55 billion) for the city government - the highest single day record in history.
One of the 12 sites was sold at a 49.3% premium over the starting price, with the remaining lots sold at a 0-26% premium, according to property agent Centaline Beijing. One site failed to draw any interest.
The results come after the city government allowed buyers, for the first time, to pay just one deposit to take part in bidding for all the sites.
Authorities also lifted the requirement – for certain plots – in which developers must allocate at least 70% of the floor space for flats that are smaller than 90 square metres to ensure they build more affordable homes.
But analysts warned that the headline numbers should not be read as a sign of recovery, but more as a result of government efforts to prop up sales to send a positive message to the market.
At Monday’s auction, only three out of the 14 successful bidders were private developers including Greentown China Holdings and Guangzhou R&F Properties, while the rest were state-owned companies. Previously active players like China Vanke, China Evergrande and Sunac China Holdings were absent.
Ref: Property Report
