Beijing Property Developers Are Now Slashing Prices In Order To Find Buyers

Beijing China Property

Chinese property companies have slashed selling prices by 15% in Beijing, in a bid to spur buying demand according to Chinese real estate research firm Centaline.

China Daily:

Shanghai-headquartered Shimao Group just launched an upscale residential project called “Royal Garden” in Beijing’s Central Business District area at a price of 65,000 yuan per sq m. The average price of similar projects nearby has been close to 70,000 yuan per sq m.

“We’ve taken the impact of tightening policies into consideration and are offering competitive prices even in a sluggish market,” said Xu Shitan, executive director of Shimao Group.

“Without the market adjustment, we’d price these units above 80,000 yuan per sq m.”

This price cut seems particularly severe, even if it’s an indirect one:

According to a sales manager surnamed Li, Shimao will sell the first 20 units at a promotional price of 45,000 yuan per sq m. If customers buy the unit outright, another 10 per cent discount would be available.

Yet curiously, land prices and transaction volumes are soaring across the nation:

Capital Vue:

The average transaction price of land in 20 major cities in China surged 193 per cent to 3,590 yuan per square meter for the week ended July 25, reports Yicai, citing statistics published by the Soufun-affiliated China Index Academy.

The average transaction price of residential land in 20 major cities in the same period soared 263 per cent to 4,137 yuan per square meter.

A total of 49 plots of residential land were transacted in the week ended July 25, an increase of 88 per cent week-on-week. Transaction area increased 16 per cent week-on-week to 1.32 million square meters.

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