Homes sales are up in Beijing more than a year after the government imposed tough regulations on property sales. The real estate market in China's capital had cooled after the government announced a mix of credit and tax policies, restricted purchases of second or third homes in some cities and launched massive subsidized housing projects for low-income residents.
Premier Wen Jiabao vowed on July 7 the government will continue to monitor real estate market regulations, hoping that move will curb speculation in the property sector.
Still, China Daily reports, there have been signs of growth in recent weeks with increasing land sales.
Two land bids especially hit high points. In the southern suburb of Daxing, a 53,870-square-meter plot was auctioned for 2.2 billion yuan (about $346 million U.S.), according to the Beijing Land Reserve Center, a government body in charge of public land management.
The consortium that won the bid said it will develop the land for residential housing and supplemental commercial space normally reserved for shops, restaurants and offices.
In the city's remote northern suburbs, where property prices are low, another plot of primary residential land covering 113,816 square meters was auctioned for 428 million yuan. Developers told the Beijing Land Reserve Center they decided to bid on the dirt because of its size.
The bids came just one week after a record residential land bid -- 2.63 billion yuan for a 38,900-square-meter plot in Haidian district, home to the Zhongguancun tech business zone.
"The demand for top-rated land has grown as developers recover from cash shortages after a surge in home sales," Zhang Dawei, a chief market analyst with Zhongyuan Real Estate, a property agent, told China Daily.
The property market, particularly in Beijing's most sought-after locations, is expected to recover, Zhang told the newspaper. But the market in less-than-ideal locations will remain sluggish.
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