Beijing posted record land sales for a single day on Monday with a total of $4.6 billion of transactions, providing a shot in the arm for China’s sluggish property sector, Caixin reports.
Beijing’s municipal government auctioned 13 plots with 12 of them selling. Both the number of plots sold and the total value of the sales were records for the city.
Around 50 developers bid for the land parcels, but the country’s leading private developers were conspicuous by their absence at the auction. The purchases were driven mainly by state-backed developers including China Construction First Building Corp, Beijing China Railway Noble Real Estate Development Co and Greentown China.
Beijing has accelerated its auctions toward the end of the year in order to meet its annual target for land sales. The city said it would make 1,200 hectares available for residential development and 650 hectares for commercial projects.
But the city has struggled to meet these targets due to the cooling of the property market, driven by slowing economic growth and government restrictions on property speculation. Beijing had reached just 35% of its land supply target as of Monday, according to Beijing Hop Choi Real Estate Brokers Ltd.