Beijing’s high-end property developers focus on young elite buyers
Analysts say 5.64 billion yuan paid for site after fierce bidding will mean highly prized residential properties selling for more than 100,000 yuan per square metre
High-end properties in central Beijing – tipped to attract prices of more 100,000 yuan per square metre – are being targeted at young elite customers, a mainland newspaper reported today.
Young people in their 30s, working in finance, investment and internet companies, have replaced entrepreneurs in their 40s and 50s from the manufacturing sector as the leading buyers of the luxury homes built within the capital's third ring road, property companies told the China Business News.
At the most recent land auction in Beijing, the government-owned Beijing Capital Land paid 5.64 billion yuan (HK$7.14 billion) after 140 rounds of frenzied bidding for a development site in Haidian District’s Zhongguancun region, which lies close to high-tech companies and universities.
Analysts calculated that the high price would mean residential properties built on the site would be sold at more than 100,000 yuan per square metre.
Fierce competition during the auction was sparked by market optimism among developers following an easing in property policy controls, easier access to credit and a recent rise in house sales, said Guo Yi, supervisor at Yahao Real Estate Selling & Consulting Solution Agency.
“Developers are putting more investment in first-tier cities, where demand is strong, rather than third or fourth-tier cities, where the market is sluggish because of a serious oversupply,” he was quoted as saying.
“That’s why it’s hard to win land auctions and land prices have been pushed up.”