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Developers splash out 16b yuan on nine plots

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The central government's attempts to cool the property market appears to be failing, with mainland and Hong Kong developers spending 16.33 billion yuan (HK$18.52 billion) on nine sites yesterday.

Hot bidding for the sites, located in Beijing, Chongqing and Foshan, signals that developers remain bullish despite recent government measures to discourage excessive price appreciation.

Sun Hung Kai Properties acquired a residential site in Foshan, Guangdong province, for 3.46 billion yuan. The property covers 330,000 square metres, which could provide a total gross floor area of 1.29 million square metres. That translated into 2,682 yuan per square metre.

The developer, which did not join a Hong Kong land auction for two residential sites in Tai Po on Monday, is boosting its land bank on the mainland as it relies on growing demand for housing. The Foshan site is the first plot the company bought on the mainland this year.

China Merchants Real Estates acquired a residential site in urban Chongqing for about 5.1 billion yuan. The 336,600 square metre site could provide a total gross floor area of 1.45 million square metres. The unit rate is 3,517 yuan per square metre.

The Beijing municipal government pocketed 7.7 billion yuan from the sale of seven development sites in the city. Despite six of the sites being located in semi-urban and rural areas, developers bid aggressively.

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