In a bid to rein in property prices, the Beijing Municipal Bureau of Land and Resources auctioned off six pieces of land today used to develop low-price commercial homes. These units are on average 30-percent cheaper versus their peers.
Monday’s land auction in Beijing was jammed packed with eager real estate developers and the media. Non-essential staff could only observe the process live from a screen.
The six pieces of land will provide building space for about 11,000 two-bedroom apartments. The highest price they are allowed to sell for is 22,000 yuan per square meter, or around 360 dollars per square foot.
Beijing’s municipal government plans to supply more low priced homes come at a time when the city’s housing prices have surged 20 percent from the same time last year. October figures from China’s National Bureau of Statistics show home prices in 69 out of the 70 surveyed major Chinese cities are still going up.
The government expects this new type of low-priced commercial homes to provide choices for those who either can’t afford to buy a regular commercial home or do not meet the welfare criteria to apply for affordable housing. But, Beijing residents are divided.
The Beijing government has announced it will supply 20,000 out of the 70,000 low-priced commercial homes by the end of this year. And there are still 11 pieces of land waiting to be bid on, and most of these auctions will take place in November.
Source: CCTV
