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Beijing Land Sales in H1 Nearly Quadruple Year Ago

06-28 12:12 Caijing
Passion for land, however, is cooling down amid recent tightening liquidity in the country’s banking industry.

Land sale revenue of Beijing, China’s capital city, in the first half of this year nearly quadruples the number a year ago, despite the Chinese government’s strong stance on reining in property inflation.

The Beijing municipal government generated 66.4billion yuan from land sales in the first six months, that’s more than the figure for the 2012 full year, and a sharp rise from the same period last year which reported 13.6billion yuan in land sales.

The number of deals completed in the first six months is lower than 37 for the full year of 2012, but the area of land sold for construction use hit 2.76million square meters, compared with the 2.756 million in 2012.

The sharp rises are largely attributed to healthy sales data reported by the country’s developers in the first half of 2012, said Zhang Dawei, a chief market analyst with Zhongyuan Real Estate.

China’s commercial housing sales hit 2.59trillion yuan in the first five month, a remarkable 52.8% rise from a year earlier, National Bureau of Statistics said.  

Zhang estimated that Beijing’s land sale revenue is likely to rebound above 100billion yuan by the end of 2013.

Passion for land, however, is cooling down amid recent tightening liquidity in the country’s banking industry, as shown on Thursday, when four plots of land were sold in Beijing, with three of them by public auction and the other three by tender, bringing in 2.83billion yuan for the municipal government.

Only three developers bid for a auctioned commercial plot of land in Shi Jingshan, which was sold at 1.43billion yuan with a 41% premium while the other three sold at nearly no premium.

Beijing is hard to see a frenzy for land in the second half of this year as developers could face increasing capital pressures following changes in the government’s financial policies.  

China's central bank Monday urged lenders in the country to strengthen liquidity management, in a sign Beijing does not intend to loosen policy despite a recent credit crunch.

Eleven plots will be for sale in July, including the wildly-chased Xiajia Hutong, a piece of land located near the southern third ring road, whose sale was scrapped last month over concerns the price could reach a record.

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