Prices of homes adjoining a prime residential site in Beijing have been given a boost after the site was sold for a record-breaking price last week.
'The transaction prices of homes near the site have gone up by about five per cent since the land auction because owners raised their asking prices after the site was sold,' said Dickson Wong Hung, chief executive for northern and southwest China at estate agency Centaline Property.
Private local developer Sinobo Group won the Haidian site last Tuesday with the 46th bid of the auction, paying 2.63 billion yuan (HK$3.21 billion), or 33,831 yuan per square metre.
That made it the most expensive site in the capital in terms of floor area, despite the curbs in place to try to limit home price rises.
The price surpassed the previous record for a residential site - 29,859 yuan per square metre, paid for land in the capital's Shunyi district in 2009.
Some mainland media reported that a small number of flat owners in the vicinity of the site raised the asking prices of their properties after news of the auction. One report cited an example of a luxury-home owner who originally offered his home for 5.2 million yuan, but after the auction marked the price up to 5.35 million yuan.