Developers pay high prices for land
Property developers bid aggressively at a land auction in China’s eastern city of Huangzou to restrict home purchases, to cool price rises.
Five parcels of land were sold during the first land auction since the second tier city introduced the restrictions.
The highest bidding price was more than three times higher than the starting price of 12,800 yuan, per sq.mtr.
“ Such a high premium rate indicated that even with restrictions in place, property developers are still quite optimistic about Hangzhou’s housing market. At least they don’t think that this round of restrictive policies would limit sales,” said Ma Yingshu, general manager at Hangzou branch of real estate management.