More land enter into market to curb housing price in Beijing

Seven pieces of land was auctioned in Beijing on Wednesday. This followed ten pieces of land which entered the market last week. Analysts say the municipal government is curbing the skyrocketing housing price by offering more land.

Most of these seven pieces of land are located within the central districts rather than the suburbs. The total planned building area exceeds 600 thousand square meters.

Dong Fan, Director of Property Research Center of Beijing Normal University, said, "The Beijing municipal government is sending a clear sign to increase the land supply. This is expected to ease market demand and curb skyrocketing housing prices in the city."

Official data shows that five out of the seven pieces of land are for non-residential use. One of the parcels requires a one-off payment. Together with the ten pieces of land which entered the market last week, the total building area hit nearly 2.3 million square meters.

Figures show that Beijing's average daily transactions of commercial housing dropped 11 percent in February from the previous month. The city's average price of new housing also fell nearly 6 percent month-on-month... reversing what had been an earlier upward trend in the city's housing prices.