Land prices in China Down 13 Percent
BEIJING - The price of land in 120 cities in mainland China fell 13 percent in the first quarter of 2011. This indicates the Chinese government efforts to cool the property market began to feel its effects. Data China Real Estate Index System (CREIS) shows the average land price of 1609 yuan before 1914 Hong Kong dollars per square meter during the first three months of 2011 until March. The number of housing being sold through government auctions fell 21 percent to 4372 in 120 cities.
Apartments in Hangzhou, China. Photo taken early July 2010. The Chinese government states continue to tighten policy in property prices.“Developers are now carefully considering the acquisition of their land home sales declined following the central government’s policy of limiting the number of home purchase,” said Director CREIS, Jiang Yunfeng as quoted by South China Morning Post, published in Hong Kong. Jiang expects property prices will continue to be pressured amid a series of policies to curb demand and speculation. “The developers might adopt a low price strategy to market their new projects to maintain cash flow,” said Jiang. “Developers will be more selective filling of their land amid a sluggish market,” he said.
Last week, the Shenzhen Municipal Government was forced to withdraw a premium commercial sites from the auction after receiving tremendous response from potential buyers. At the start of the auction, this site has offered 650 million yuan or 24,000 yuan per square meter. This nine attract developers to join the auction, but nobody bid. In Guangzhou, the four regions with a total area of ??210,000 square meters have been sold at the opening auction.
Based on the observation CREIS to 35 cities in mainland China, home sales volume has decreased more than 40 percent between 4 April and 10 April, compared to the previous week. Residential sales transaction in Dalian fell 89 percent during that period, while Chongqing slumped 58 percent. Similarly, home sales in Beijing fell 40 percent.
In February, a local non-Beijing residents are required to have proof already paid taxes in the city for five years, before they are allowed to buy a house in the city. The number of non-local residents Beijing so far recorded 60 per cent.
$ 14 , 2 9 4 , 0 0 0 , 0 0 0 , 0 0 0 . 0 0-current US limit
