Fengtai Land Sale Signals Property Market Shift in Beijing as No Price Cap is Set

Fengtai Land Sale Overview

In a groundbreaking move, the Beijing government has not set a price limit for a residential land sale in Fengtai for the first time in over three years. This decision indicates a shift towards policy relaxation aimed at stimulating home sales amidst a property-sector slowdown.

Key Details of the Land Sale

The site covers 63,700 square meters (721,000 sq ft) with a starting price of 11 billion yuan (US$1.5 billion). Positioned at a prime location near major subway lines and the soon-to-be-completed transport hub connecting to Beijing Daxing International Airport, the land is expected to support 178,300 square meters of floor space.

• Supply of residential land parcels across 300 Chinese cities has decreased by 30% year-on-year.
• Land sale prices have dropped over 40%, reflecting current market conditions.
• Beijing aims to attract competent developers with advantageous land resources.

Impact on the Property Market

This removal of price limits is a direct response to sluggish market sentiment and is anticipated to allocate land resources more effectively. The Beijing Municipal Commission of Planning and Natural Resources has stated that this strategic move is essential for supporting a stable and healthy property market.

Future Outlook

Authorities have initiated a historic stimulus package, including cuts in mortgage rates and modifications to home purchase rules, to combat the four-year downturn in the property sector. The tender for the Fengtai plot runs from October 31 to November 29, and it is poised to reflect an evolving approach in Beijing's real estate landscape.