Beijing suspends land auction over high price concerns
BEIJING Oct 11 (Reuters) - Authorities in Beijing suspended the auction of a plot of land over concerns it could fetch a record high price, amid signs of sustained heat in the property market despite a near four-year long official campaign to keep prices in check.
Rising land prices would fuel market expectations of rising home prices, adding to the risk of a property bubble in the world's second-largest economy.
The Beijing Municipal Bureau of land and Resources cancelled the auction without giving a reason, according to a statement posted on the bureau's website on Thursday.
But the official China News Service quoted officials from the bureau as saying the move was aimed at stabilising market expectations as the capital city's property market has shown signs of overheating.
The move follows a series of recent deals that saw land prices hit record highs in large cities, including Beijing, even as the central government has been renewing its push to rein in the frothy housing market.
Beijing authorities had previously suspended a land auction in May, but then reopened the sale with an even higher starting bid level.
China's developers have posted strong contract sales in the first nine months of 2013, and some of them have already hit their full-year sales targets. (Reporting By Xiaoyi Shao and Jonathan Standing; Editing by Kim Coghill)
- Housing, jobs data weaken, but overall economic picture still upbeat
- Target cyber breach hits 40 million payment cards at holiday peak |
- UPDATE 3-Saab wins Brazil jet deal after NSA spying sours Boeing bid
- 'Duck Dynasty' anti-gay fallout sparks debate on religion, tolerance
- Zuckerberg to sell Facebook shares worth about $2.3 billion |