A consortium including China Resources won a large residential site in central Beijing’s Fengtai district on Wednesday for 8.625 billion yuan (HK$10.8 billion), making it the most expensive plot in the capital. The record was previously held by a commercial-residential site in Beijing’s central Hua Jia Hutong that was sold to Beijing Huarong for 7.46 billion yuan in August. Yesterday’s price tag, 22 per cent higher than the government’s opening price of 7.07 billion yuan, represents 20,599 yuan per square metre. The plot could yield a total gross floor area of 418,693 square metres. A Wharf consortium paid 8.6 billion yuan for two adjoining sites in the same area on Monday. “It is not a surprise to see developers bidding up prices as there is a shortage of land supply in Beijing,” said Jiang Yungfang, a director at consultancy China Index Academy, run by the mainland’s biggest real estate website operator, Soufun. “It also shows that home prices in Beijing will be unlikely to fall in the foreseeable future.” After more than 50 rounds of bidding, China Resources beat more than 10 developers to secure the site at yesterday’s government land auction. The site also drew bidding from big players such as China Vanke, Longfor Properties and Poly Property. Jiang said the winning developer could generate reasonable profit as flats in the area currently fetched 40,000 yuan per square metre. Another analyst said the sale indicated developers were bullish on the market’s outlook.