Strong demand for office and retail space in Beijing is driving prices steadily higher and will help developer Soho China reach its revenue target of 10 billion yuan (HK$11.35 billion) this year, according to chairman Pan Shiyi.
'Sales are exceeding our expectations. We have been raising our asking prices by 1 per cent every 20 days for the past few months, and sales have remained strong,' said Pan.
Soho China will raise selling prices for its retail and office space by a further one-off 5 per cent from November 1, which will mean that asking prices at its three Beijing projects will have risen a total of 10 per cent from the start of the year.
The Beijing-based firm is selling space in Sanlitun Soho, Zhongguancun Soho and Chaoyangmen Soho.
Year to date, revenue had amounted to eight billion yuan and the price rises meant the company would meet its full-year sales target of 10 billion yuan, said Pan, who added that investor demand was growing despite rising prices. 'We have noticed that buyers of our commercial projects are no longer limited to investors from northern cities. They are now coming from all over the country and also Hong Kong,' he said.
According to the city government's website, retail space in Sanlitun Soho is selling at an average of 60,535 yuan per square metre. The average selling price for an apartment is 38,508 yuan per square metre and that for office space is 38,921 yuan per square metre.