Caixin
Jan 21, 2014 07:03 PM

Two Luxury Developments Inch Closer to Hitting Market in Capital

(Beijing) – Two luxury housing projects in the capital have received special permits from the housing regulator, a sign the city is easing limits on the high-end property market.

The Beijing housing commission published the list of the year's first batch of residential housing projects to receive pre-sales permits on January 19.  The permits are required before developers can take reservations from potential buyers.

Beijing Deputy Mayor Chen Gang said at the second session of the 14th Beijing Municipal People's Congress on January 17 that prices for high-end properties should be left to the market.

Homes in the luxury Taihe and Yueyuan projects will sell for more than 65,000 yuan per square meter. The total value of the two projects will pass 5.2 billion yuan, Centaline Property Agency says.

Taihe is in the eastern Beijing district of Chaoyang, and Yueyang is in the southwestern district of Fengtai.

Two other residential projects also got the permits.

In November, the city stopped issuing pre-sales permits to luxury housing priced at 40,000 yuan per square meters or more.  The policy slowed the high-end property market.

However, Zhang Dawei, an analyst at Centaline said government efforts to withhold the permits did not affect developers much. "High-end property developers care more about profit than turnover, so many choose to hold onto the project and wait for the right moment," he said.

Analysts say developers are waiting to start sales for seven high-end projects in Beijing. This includes homes on a parcel bought by Sunac China Holdings Ltd. in September.

Zhang said developers of luxury homes are optimistic about their outlook because rising land prices last year signaled robust demand.

The capital took in 11.3 billion yuan from fees related to land transfers on January 16, the highest single-day amount of the year so far. Government revenue from land sales has reached 37 billion yuan as of January 17.

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