Developers losing appetite as two of six sites on offer draw only one bid each
Two out of six plots of land on sale in Guangzhou could attract only one bid each when tenders closed yesterday, suggesting government austerity measures to cool the property market have curbed developers' appetite for acquisitions.
The sale was Guangzhou's first since the central government in May ordered banks to tighten lending and raise interest rates.
Property developments would continue to feel the impact of regulatory measures, a Macquarie Research report said.
'Investors need to be selective in order to best leverage on China's growth potential,' the report said.
Of the sites on sale, commercial plot A3-1 at Pearl River New Town in Tianhe, the city's new central business district, attracted a single bid of 148.66 million yuan from Guangzhou R&F Properties.
The site can produce a total gross floor area of 62,460 square metres when eventually developed.
