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    ENGLISH EDITION OF THE WEEKLY CHINESE NEWSPAPER, IN-DEPTH AND INDEPENDENT
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    Beijing’s Land Market Cools
    Summary:New policies are scaring real estate developers away from buying land

     


    May 16, 2013
     
    Translated By Yu Menglu


    In response to a recent series of land curbs in Beijing, which included the introduction of limits on price increases, real estate developers' enthusiasm for both commercial and residential land in Beijing has begun to decline.

    On May 10, parcels of commercial land were listed for sale on the website of the Beijing Land Management and Reserve Center (北京市土地整理儲(chǔ)備中心). Of the eight parcels up for auction, only one has so far received a bid.

    Residential land in Beijing's Fengtai District, normally highly sought after by real estate developers, also experienced a decline in interest in May.

    "Due to high prices and severe restrictions in Beijing's land market, real estate developers are exercising caution when bidding and taking greater account of market demand," said Guo Yi (郭毅), marketing director at Yahao Real Estate Selling & Consulting Solution Agency.

    According to Guo, yesterday’s (May 15) auction of two parcels of land in the Tongzhou canal area failed because offers made by real estate developers were lower than the reserve price set by the government. Outcomes such as this highlight a gap between the high price of land and real estate developers' concerns about the future of the market.

    Zhang Dawei (張大偉), marketing director of Centaline Property, has stated that the poor performance of land auctions in Beijing doesn't necessarily indicate a cooling of the land market throughout China. It does however signal the land market in Beijing is cooler compared to the first quarter of the year.

    Links & Sources: 
    China News北京多地塊競價(jià)階段無人問津 土地市場現(xiàn)降溫

     

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