House prices surge along Beijing's No 5 subway line
(chinadaily.com.cn)Updated: 2007-06-14 09:43 Since Beijing subway's Number 5 line project started in 2003, the prices of the houses along the route rose by 17.8 percent per year on average.
When Jia Yun Yuan, a property project in Changping District, at the north end of the No 5 subway line, opened in July 2003, its average housing price was only 3,700 yuan (US$485) per square meter. But now even the prices of second-hand houses have hit 7,300 yuan (US$957) per square meter.
Also, at Song Jia Zhuang, at the south end of the yet-to-be-opened subway line, the prices of three buildings on sale are between 12,000 yuan (US$1,573) and 13,800 yuan (US$1,809) per square meter.
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He said living close to public transit is only one of the factors that should be considered when setting prices. The subway is no longer a strong selling point for consumers as they have heard the benefits before.
The No 5 subway line spans 27.6 kilometers from Beijing's north to south. According to the analysis of Golden-Keys Real Estate Co Ltd, different sections along the new subway line will have different housing prices.
Those who drive usually do not care about the convenience of public transit when they buy houses. And those living in the center of the city are more likely to choose other transporation means rather than the subway for short-distance traveling. So the housing prices in downtown Beijing will not be strongly affected by the upcoming subway line.
But the opening of the new line means those who live far from the city center will be able to commute faster into the city, and also a golden opportunity for real estate developers in those areas.
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