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Municipal officials in Beijing ease property price cap - report
July 7, 2014 / 8:41 AM / 3 years ago

Municipal officials in Beijing ease property price cap - report

HONG KONG/BEIJING, July 7 (Reuters) - 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 Monday.

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 market.

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 percent.

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

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