China’s Land Sales Still Sluggish Despite Relaxed Auction Rules

China’s land market remains sluggish following a slump that started mid-year even as local governments began relaxing restrictions on auctions to attract reluctant cash-strapped private developers.

In the fourth quarter as of Dec. 20, the average transaction price at land auctions in 300 major cities was only 3% higher than the average starting price, falling from 17% and 8% in the second and third quarters, respectively, according to a report released by real estate data collector China Real Estate Information Corp. (CRIC).