[photopress:property_guangzhou.jpg,full,alignright]The Municipal Government of Guangzhou, capital of south China’s Guangdong Province, will auction off more than 1.4 million square meters of land in a bid to cool down rising residential property prices.
A 110,000-sq-m plot has just been sold in the Guangzhou Development District (GDD) and low-cost apartments will be built on the land to house local low-income families.
The city’s land sales this month are expected to set a record high for a single month — double that of the first eight months of the year.
Some of the land will be used to provide affordable housing for low-income families and migrant workers, while the rest will be used for commercial apartments.
The average price of residential homes was more than RMB12,000 per sq meter at the end of August across the Guangdong provincial capital’s eight main districts. One prediction is that the city’s property prices will continue rising until 2015 despite the release of the extra land.
Zhang Guangning, mayor of Guangzhou said the city will auction 71 pieces of land over more than 5 sq km to property developers for a mix of affordable and luxury apartments.
Zhang Guangning said, ‘It will be two times more than the total land auctioned off in the city in the past two years.’
He has pledged to put the brakes on the city’s rising real estate prices.