BEIJING: The city’s land sales market’s lively 2Q2009 performance was dominated by significant deals concluded by domestic developers, according to a quarterly bulletin released by Colliers International.
According to the Real Estate Investment Market Bulletin 2009, there were more than 10 transactions in 2Q2009 with overall investment surpassing RMB11.5 billion (RM218.5 million).
Major land deals include R&F Properties acquiring the Guangqumen No 10 plot at RMB1.02 billion and Franshion Properties (China) Ltd purchasing the Gunagqu Road No 15 plot at RMB4.06 billion.
In addition, four significant transactions amounting to several billion renminbi during this period were registered in the residential and office sectors, concluded by state-owned businesses and well-financed entities.
The transactions include Greentown China’s purchase of a residential project at Dongzhimenwai Xiejie No 8 in Chaoyang District, a Winbase and SOHO China joint venture buying Chaoyangmen SOHO Phase I’s No 2 building, and The China Development Bank’s acquisition of No C1 Beifeng.
A gradual recovery in the capital values of properties in conventional sectors is expected to follow the economic rebound in Beijing. Nonetheless, capital entry from foreign investment institutions will be deterred by the wide price gaps for existing projects, especially commercial ones.
The rising level of investment activity was attributed to the availability of bank loans as well as government stimulus measures at the local and central level that were engineered to reduce financial pressure on domestic developers and bolster the market.Measures instated include lowered minimum capital ratio for real estate development for the first time since 1996, as well as the Beijing Municipal Bureau for Land and Resources lengthening the period for land acquisition payment.