New Beijing "Land Kings" Continuously Being Crowned As Land Prices Exceed Average Home Prices

Land prices are climbing in Beijing, leading to the crowning of a new land king every week or so.

Beijing sold 25 parcels of land in the past month, with the latest parcel in Changping selling for 4.5 billion yuan. Based on the developer's planned construction, it works out to 43,000 yuan per square meter. Changping is an outer district of Beijing, north of Haidian. As of October, CREIS reported the average price in all of Beijing was 34,596 yuan per square meter and the median price was 27,750 yuan per square meter. The price of the land is 25% above the average price of new homes. This is why analysts are forecasting a rise in prices in the first-tier: only luxury construction can justify these prices.

The oft quoted Zhang Dawei of Centaline says Beijing's average residential land sale price in 2015 is 38,000 yuan per square meter this year and land prices are about 42% of final sales prices, pointing to final per sqm home prices above 80,000 yuan, or more than 130% above the current average for new homes.

iFeng: 北京一个月成交25宗地 区域地王不断刷新


  1. I don't trust it for one second - there were plenty of stories about how Land Kings were fake sales in other cities - govt entity buying at crazy price in hopes to push up sales of future auctions (or developer purchasing at high price with guarantee for money to be returned to him).

  2. if deteriorating breadth in stock means investors sell low quality stocks and buy big blue chip stocks, then deteriorating breadth in real estate should mean investors sell house in smaller cities and buy in big tier 1 cities.