The first ever auction of Beijing's historic courtyard houses
has been aborted after buyers refused to meet the reserve prices
for fear the buildings could face demolition.
The Beijing Shengjia International Auction Co Ltd was putting
the property rights to 17 traditional siheyuan homes under
the hammer, but abandoned the sale in less than an hour.
A company spokesman said the auction held in Beijing's Xiyuan
Hotel on Saturday attracted plenty of interested buyers, but none
were willing to offer reserve prices ranging from 1.8 million yuan
(US$227,675) to 40 million yuan (US$5.1 million).
The company stated yesterday that the auction was intended to
test the market price potential for the properties, similarly to an
antique or art auction.
The homes, all nestled in downtown areas, covered areas ranging
from 90.3 square meters to a floor space of 1,365 square
meters.
A market analysis had indicated the properties were in
sought-after locations and had been built according to traditional
fengshui styles, and that this would appeal to overseas
buyers, companies wanting offices with character or even to
individual preferences.
However, the potential buyers shunned the asking prices, citing
uncertainty over the properties' future in view of potential
demolition by city planning officials.
Hua Xinmin, a siheyuan conservationist, said the future
of homes not listed in the government's designated preservation
schedule was unpredictable. To date, the municipal government has
listed just 600 of Beijing's 3,000 courtyard houses for
preservation.
Although market demand for courtyard homes is active,
transactions are often obstructed by complex property rights
problems, since rooms in a siheyuan house can be owned by
different owners.
Xu Chengfeng, a sales manager with an investment consulting
firm, attended the auction on behalf of his company, which was
looking for a downtown property. However, he said the company was
concerned that almost all the properties would require costly
renovation, showing sometimes more pressing fears than potential
demolition.
The city's siheyuans are clustered in hutongs and built from bricks and
tiles, featuring wood and stone carvings. City regulations require
owners to retain this architectural style through renovation,
specifically using traditional building techniques and materials to
preserve the siheyuan authenticity.
(Xinhua News Agency October 17, 2006)