HONG KONG/BEIJING, July 7 China's Poly Real
Estate Group Co Ltd has received regulatory approval
to price a Beijing project at a record high of almost 100,000
yuan ($16,100) per meter square, signalling an easing on pricing
policy for developers in the capital, a local report said on
Last month, seven projects in Beijing that received selling
approval had planned to set prices above 40,000 yuan, a cap the
local authority set last November, China's National Business
Daily added. The cap made developers less interested in bidding
for expensive land in the city.
Any move to drive up home prices in China, which are already
near record levels, can be controversial. The central government
would prefer that local authorities help curb property
speculation because it fears unaffordable property prices could
cause social unrest.
At the same time, some Chinese cities have tried to limit
property price cuts to 15-20 percent from the original asking
price, developers and real estate agents said in May, in a bid
to slow a steeper industry downturn and boost confidence in the
The Beijing municipal housing commission granted the
approval for the Poly project on June 14, according to a
statement on its website.
Officials at the commission declined to comment.
Beijing's total land area sold in June fell 81 percent
compared to a year ago, while total selling prices dropped 89
Some local governments are also allowing people to buy more
than one home. The northern city of Hohhot in the Inner Mongolia
region was the first city to openly relax housing restrictions.
($1 = 6.2016 Chinese yuan)
(Reporting by Clare Jim and Wang Lan; Editing by Matt Driskill)