Beijing suspends land sales due to price

Six parcels of land in Beijing have been sold recently at record high prices in a deal that's generated a lot of buzz. In response, the Beijing municipal land authority on Friday stated that the sale of prime lots will be paused and new measures for land supply will be introduced soon.

Zeng Zanrong, vice director of the Beijing land authority, says the municipal government will supply more land designated for construction of subsidized and non-luxury housing. Meanwhile, sales of prime lots will be suspended.

Zeng said, "Prime lots refer to places where land prices and housing prices rise rapidly and sharply. These places are also featured with short supply."

Local government will also introduce a new system for land sales. Reasonable ranges for land prices will be established and conditions stipulating low-income housing construction will be added to the purchase contract.

Zeng said, "We will consult experts to assess land and determine a reasonable range for its price. If developers bid an auction price that exceeds the range, we will require developers to build low-income housings."

The land authority has also confirmed an increase in the supply of land for construction of small and medium sized commercial developments. In addition, subsidized housing of 16 million square meters will be constructed on 1,250 hectares of land. Sixty-percent more than last year.