Would a property developer choose midnight to sell new homes?
Usually not. But the strange phenomenon did happen several weeks
ago in Beijing.
Wary that disappointed people who failed to buy property would
make trouble, the developer chose to open home sales at
midnight.
Located in the capital's central business district, the project
attracted over 1,000 potential buyers for 200 units on sale even as
prices jumped from 9,000 yuan to 11,000 yuan a square meter over
the month before sales even commenced.
Driven by the strong demand and shrinking supply, Beijing's new
property prices rose 10 percent year-on-year in June, among the
country's top four cities in rates for rising prices. The price of
pre-owned homes also increased by 9.4 percent on a yearly
basis.
"Strong purchasing power outside Beijing and speculative buying
led to the continued price hikes," said Yu Xiuqin, spokesperson of
Beijing Statistics Bureau.
The number of permanent residents in Beijing grows by 300,000 to
400,000 every year. City college graduates alone soared from 70,000
in 2001 to 179,000 in 2006, with a large number of them choosing to
stay in the capital.
The upcoming Olympic Games has also served as a catalyst,
especially on high-end projects.
According to CB Richard Ellis, an international real estate
service company, the average rent for Beijing's serviced apartments
reached 213.8 yuan a square meter a month in the second quarter, a
2.8 percent increase on a quarterly basis.
"Given the current growth pace, Beijing's property prices are
likely to see a 20 percent rise this year," said Li Wenjie, general
manager of Centaline.
(China Daily July 25 2007)
