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New "Land Kings" Crowned in Shanghai, Beijing

09-05 14:02 Caijing
land sales in Beijing have amoutned to 109.9 billion yuan so far this year, higher than the 64.79 billion registered in the full 2012.

Land markets continue to heat up in China's biggest cities, with new "land kings" crowned in Beijing and Shanghai in recent days, highlighting the central government's pressure in curbing housing prices.

Sun Hung Kai & Co on Thursday won a bid for a central land project in Xu Jiahui in Shanghai, at prices equivalent to 37,264 yuan a square meter. At a premium of 24.4 percent, the deal made itself the most expensive in Shanghai land sales in history.

Data shows that the land is around 99,000 square kilometers, with gross floor area of 580,000 square kilometers on the ground and about 120,000 underground.

On Wednesday, Hong Kong-listed Sunac China Holdings Limited acquired a plot of land in the northeastern Beijing at a price of 73,000 yuan a square meter, also setting a new record in Beijing's property land deals.

Other seven property developers including China Overseas Group, Maoyuan Real Estate and Beijing Urban Construction Group were among the bidders for the land which costs Sunac a total of 4.32 billion yuan including 2.2 billion yuan scheduled for the construction of a hospital.

Sunac plans to build luxury residential apartments in the land, and is optimistic about its prospect.

Buying this land doesn't pressure the company much financially, the company said. Its CEO Sun Hongbin told a meeting on half-year results in August that their purchase of a land in southern Beijing also at a higher price than expected had "justified the company's judgment on Beijing real estate market".

Zhang Dawei, a property researcher, said commercial apartments at this land plot will be sold at least 100,000 yuan a square meter to cover all kinds of costs. That compares with second-hand home prices of around 50,000 yuan in the region.

Following yesterday's record sales, land sales in Beijing have amoutned to 109.9 billion yuan so far this year, higher than the 64.79 billion registered in the full 2012.

Analysts expect this year's land sales could reach a peak seen in 2010, at 163.9 billion yuan, fueling concerns over rising home prices.

Sales of newly built homes in Beijing hit 162 billion yuan in the first eight months. That was 9.4 percent higher than that in the same period in 2009, the highest level in years.

 

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