Chinese luxury housing is on the up
Chinese luxury housing is on the up
Encouraged by a blossoming luxury residential market, developers eye prime tracts of land
– Abriga Media (Flickr)
If their recent splurges on plum land parcels are anything to go by, mainland China developers are showing more faith than usual in the luxury market.
Recently, property developer Future Land won the bid for a highly coveted “di wang” or “land king” in Shanghai’s Hongkou district at CNY87,000 (USD13,000) per square metre, a record for the city according to the South China Morning Post.
Future Land cited impressive margins in nearby luxury developments, most notably the Daning Jinmao Mansion, for following through the acquisition. Units in the development are currently valued at CNY95,000 (USD14,200) per sq m.
Similarly, state-owned developer Cindare Property placed a bid worth CNY5.8 billion (USD867.7 million) for a parcel in Shanghai’s Gu Village in June, The Diplomat reported.
More: Home sales in Hong Kong rise slowly in June
A boom in the luxury residential market is playing out in large Chinese cities besides Shanghai. In Beijing, property consultancy Yahao found a record number of transactions in June related to villas and new apartments that were valued more than CNY70,000 (USD10,500) per sq m, reported the South China Morning Post.
According to property consultancy Tospur, there were 682 transactions for new Shanghai apartments valued at CNY100,000 (USD14,900) per sq m in the first half of the year alone. Apparently, there had been fewer transactions in all of 2015.
With pricey land acquisitions, developers are coming in direct defiance of the government, which has been cracking down on overheating markets such as Shenzhen and Shanghai. The government has carried out cooling measures this year with some degree of success, pulling monthly price growth across 100 cities from 1.9 percent in March down to 1.32 percent in June.
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Source: Property Report