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Beijing sells land below market value

(Chinadaily.com.cn)
Updated: 2007-05-01 08:58

For the first time, the Beijing Municipal Bureau of State Land and Resources sold government land at a lower price than market value.

The base price limit on bids was 1.27 billion yuan (US$164.5 million). The secretary of the Bureau, An Jiasheng explained the bureau did this in order to supply less expensive housing for Beijing residents, China Securities News reported..

The highest tendered bid was from Zhuzong Real State at 1.4 billion yuan (US$181 million). Based on this price, the assessment of the property value would be 2,900 yuan (US$376) per square meter. And the government limit price on the finished apartments is set at 6,350 yuan (US$822) per square meter.

The final result of this tender will be announced after the May Golden Week holiday, said one official from the Beijing Municipal Bureau. He added the most crucial factors of the winning bidder are the construction and making sure the potential house owners are eligible to buy this property.