Beijing’s $7 Billion Sale of Land-Use Rights Attracts Only One Private Developer

Just one private developer participated in a recent Beijing sale of land-use rights that was dominated by state-owned enterprises as most private business are still struggling with access to funding amid an industrywide liquidity crunch.

Beijing put 18 land parcels up for auction with a total area of 1.5 million square meters and starting prices totaling 47.2 billion yuan ($6.62 billion), according to the Beijing Municipal Commission of Planning and Natural Resources. Ten parcels were sold at the starting prices and eight at a premium. Total sales reached 50 billion yuan, 6% higher than the asking amount.