Developers Piling Up Debt to Buy Overpriced Land

SCMP: Rapid recovery in China’s property market may not be sustainable as developers pile on debt
The latest record-breaking deal was seen in Hangzhou with a site sold for 12.32 billion yuan (HK$14.5 billion) on May 27, the highest lump sum figure paid for a site in the city. It is also the first site that has sold for more than 10 billion yuan in Hangzhou.

The site has a developable area of about 570,000 square metres, with the price paid being the equivalent of 21,576 yuan per square metre.

Developers have been competing for land amid a mainland Chinese property recovery, pushing up land prices to record high levels, especially in the first and second tier cities which face limited new supply.

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