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Three Beijing plots sold for 2.71b yuan

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North Star leads top developers in snapping up Chaoyang sites in separate auctions

Mainland developers Beijing North Star, Poly Real Estate Group and Guangzhou R&F Properties yesterday separately snapped up three mixed-use plots in Beijing for a total of 2.71 billion yuan in a city government land auction.

The sites in Chaoyang district, the second most populous precinct of the capital, were put up for tender early last week and developers needed to submit their offers by August 2.

Hong Kong-listed Beijing North Star won a 191,003 square metre site in Changying for 1.15 billion yuan, the second-highest bid offer.

To keep property prices in check, the city government also takes other things, such as plans, into consideration during land sales.

The winning bid was 45 per cent higher than the minimum offer of 791 million yuan.

Beijing North Star, owned by the capital city's government, outbid seven rivals including China Vanke, the country's largest by market capitalisation, and Guangzhou R&F, Guangdong province's biggest developer.

The accommodation value of the site is 2,938 yuan per square metre.

According to the planning mandate, the site needs to house residential and financial office buildings with a total gross floor area of up to 391,357 square metres.

Beijing North Star is aggressively acquiring land. Last month, it paid 9.2 billion yuan for a site in Changsha, the most ever for a mainland plot.

Shanghai-listed Poly Real Estate paid 910 million yuan for a 206,669 square metre residential-commercial site that could provide a total gross floor area of 368,849 square metres.

This translated into an accommodation value of 2,467 yuan per square metre.

Earlier this month, the developer bought a mass residential site in Fengtai district southwest of Beijing for 1.04 billion yuan.

Guangzhou R&F Properties paid 650 million yuan for a 95,647 square metre residential-commercial plot that could provide a total gross floor area of 251,106 square metres. The accommodation value is 2,588 yuan per square metre.

The site was the most popular of the three put up for tender, attracting bids from 15 developers because it is the closest to the city centre.

R&F Properties has developed seven residential projects in Beijing, three of them in Chaoyang district.

Nicholas Cho Nam-kwok, investment director of DTZ (Beijing), said the three sites were not near each other.

He described the price as 'matching the market's expectations'. He also said that although the sites were for mixed use, the town planning rules for them allow for just a sliver of commercial space and the rest residential.

'As they are quite far away from the city centre, the developments will be medium-end,' Mr Cho said.

'It shows again that demand for land is strong despite various government measures to cool down the property market.'

In a separate auction yesterday, Shanghai-listed Gemdale Corp won a residential site in Nanjing, the capital of Jiangsu, for 2.25 billion yuan, 294 per cent higher than the minimum bid of 570 million yuan.

The 587,953 square metre plot could be developed into a project with a total gross floor area of 1.02 million square metres.

The developer is required to build social facilities and leave open spaces on the site.

In addition, at least 45 per cent of the residential units in the development should not be more than 90 square metres in size.

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