Beijing Land Sales at Record Low

Although prices are high due to low supply, there were only seven residential land sales in Beijing in the first half of 2016. The implied housing supply of those land sales is about 3,000 homes, versus sales of 23,000 homes in the first half. All the land sales were outside of the 5th Ring. Most land sales also exceeded home prices, which will force developers to build high-end apartments if they want to earn a profit.

From the land transaction history, the first half of 2016, Beijing land market has created a number of historic lows, the number of transactions of land, an area are historically low, but the premium rate, the floor price set a record. The average floor price reached 16,435 yuan / square meter, an increase of 32.7%.

Centaline Dawei, chief analyst said the tight supply of residential land is only 7, but the actual last traded residential real estate land, housing residential area of ​​only 387,000 square meters, which means that part of the land to achieve future supply of residential real estate in general supply of about 3,000 units. If the reference to Beijing 2016 first six months of commercial housing turnover of about 23 000 units, which means Beijing land supply and demand ratio of about 1: 7.
iFeng: 京土地上半年成交量创历史最低 五环外成主流

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