Sellers hope to ride even higher on property wave, despite the skyrocketing home prices seen in major cities across China. [CFP]

Around 30 percent of people selling second-hand homes in Wangjing, Chaoyang district, have terminated contracts with buyers in recent days in anticipation of prices shooting up even higher.

Despite having to pay penalties for breaking contracts with would-be buyers, the sellers were optimistic their homes will be worth a lot more in future, following the sale of two large parcels of land in the area earlier this month that changed hands for record-breaking price tags.

Li Yan, manager of a 5i5j real estate branch in Wangjing, told METRO the two parcels of residential land sold on March 15 and 17. Li said many sellers of second-hand homes retreated from the market temporarily after that in the hopes of selling for much higher prices.

On March 15, Hong Kong listed Sino-Ocean Land successfully bid for a site in Dawangjingcun village, agreeing to pay 4.08 billion yuan.

Two days later, Poly Beijing Real Estate Limited, grabbed a 280,000-sq-m slice of land in Wangjing for 5.04 billion yuan.

Land in the area is now selling for as much as 27,529 yuan per sq m.

5i5j, which has 33 outlets in the Wangjing area, could have helped sell more than 40 homes in the area that were withdrawn before the sales were completed.

Eleven of the potential sellers ripped up contracts with would-be buyers after learning there was such a strong demand for their land.