Chinese property developers bid prices of land up by over 46 percent week-on-week last week, dismissing concerns that the central government is serious about cracking down on property price increases.
According to figures published by property website Soufun, property developers paid an average psm price of 3,714 yuan for 28 development sites during the week to October 17, an increase of 46 percent from an average 2,538 yuan on transactions concluded in the previous week.
However, the data also indicates that developers are becoming more selective.
The 28 transactions for the week are lower compared to the 67 deals in the previous week and 73 transactions in the last week of September.
In Chengdu, nine sites were snapped up, offering 450,000 sq m of total gross floor area at an average of 3,256 yuan psm. In Shanghai, two sites were also sold for an average price of 8,825 yuan psm.
The higher prices of land came despite this month’s announcement of tighter limits on new-home purchases by 11 key city governments.
City governments in Beijing, Fuzhou Guangzhou, Hangzhou, Nanjing, Ningbo, Shanghai, Shenzhen, Tianjin and Xiamen have now introduced similar restrictions on home ownership.
The move helped to dampen buying sentiment in Guangzhou, with the number of new homes being sold over the weekend down 65 percent to 702 from 1,973 units in the earlier week, said Guangzhou Municipal Bureau of Land and Resources.