Beijing scores US$4.5 billion in record land sales after easing controls to prop up property market
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But analysts warn that the successful sale of the 12 sites in one day is no indication of a market recovery
But analysts warn that the successful sale of the 12 sites in one day is no indication of a market recovery
The Beijing government’s partial easing of controls on the property market has helped it score record land sales in a single day.
Twelve out of 13 land sites were successfully auctioned off by the Beijing Municipal Commission of Planning and Natural Resources on Monday, earning a total of 31.6 billion yuan (US$4.55 billion) for the city government, and the highest single day record in history.
One of the 12 sites was sold at a 49.3 per cent premium over the starting price, with the remaining lots sold at 26 per cent to zero premium, according to property agent Centaline Beijing. One site failed to draw any interest.
The Chinese dream is rooted in the very American notion of owning a roof over every head
The results come after the city government allowed buyers, for the first time, to pay just one deposit to take part in bidding for all the sites. Authorities also lifted the requirement – for certain plots – in which developers must allocate at least 70 per cent of the floor space for flats that are smaller than 90 square metres to ensure they build more affordable homes.
But analysts warned that the headline numbers should not be read as a sign of recovery, but more as a result of government efforts to prop up sales to send a positive message to the market.