Six developers, including China Resources Land, submitted bids for the first Beijing mass residential site with a restriction on the selling price. Bids ranged from 1.11 billion to 1.32 billion yuan in the tender that closed yesterday, equivalent to an accommodation value of between 243 yuan and 289 yuan per square foot. The city mandated that housing developed on the site must be sold for 15 per cent below the market price. The sale comes as the central government tries to cool the housing market, in part to ensure that low-income residences have access to affordable accommodation. In August last year, Guangzhou became the first mainland city to impose price restrictions on two developments put up to tender. In yesterday's tender, the highest offer was submitted by local grade-A commercial developer Financial Street Holding, with the lowest from China Resources Land. However, the government said it would also take into consideration proposed selling prices for the development, project planning and the financial condition of prospective developers. The government said the results of the tender would be announced shortly. The 2,272,311-square-foot site, in the former industrial area of Shijingshan in western Beijing, is expected to provide a total gross floor area of 4,598,381 square feet. Richard Wang, associate director of consulting and research at DTZ, said property prices for new projects in the area ranged between 557 and 650 yuan per square foot. He said offers for the site were reasonable compared with prevailing property prices. 'Prices at the project may reach 557 yuan per square foot when it launched in the market,' he said.
