Would a property developer choose midnight to sell new homes? Usually not. But the strange phenomenon did happen several weeks ago in Beijing.
Wary that disappointed people who failed to buy property would make trouble, the developer chose to open home sales at midnight.
Located in the capital's central business district, the project attracted over 1,000 potential buyers for 200 units on sale even as prices jumped from 9,000 yuan to 11,000 yuan a square meter over the month before sales even commenced.
Driven by the strong demand and shrinking supply, Beijing's new property prices rose 10 percent year-on-year in June, among the country's top four cities in rates for rising prices. The price of pre-owned homes also increased by 9.4 percent on a yearly basis.
"Strong purchasing power outside Beijing and speculative buying led to the continued price hikes," said Yu Xiuqin, spokesperson of Beijing Statistics Bureau.
The number of permanent residents in Beijing grows by 300,000 to 400,000 every year. City college graduates alone soared from 70,000 in 2001 to 179,000 in 2006, with a large number of them choosing to stay in the capital.
The upcoming Olympic Games has also served as a catalyst, especially on high-end projects.
According to CB Richard Ellis, an international real estate service company, the average rent for Beijing's serviced apartments reached 213.8 yuan a square meter a month in the second quarter, a 2.8 percent increase on a quarterly basis.
"Given the current growth pace, Beijing's property prices are likely to see a 20 percent rise this year," said Li Wenjie, general manager of Centaline.
(China Daily July 25 2007)
