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Demolition fears scuttle auction of Beijing courtyard homes
(Xinhua)
Updated: 2006-10-17 15:51
The first ever auction of Beijing's historic courtyard houses has been aborted after buyers refused to meet the reserve prices for fear the buildings could face demolition.
The Beijing Shengjia International Auction Co. Ltd was putting the property rights to 17 traditional "siheyuan" homes under the hammer, but abandoned the sale in less than an hour.
A company spokesman said the auction held in the Xiyuan Hotel in Beijing on Saturday attracted plenty of interested buyers, but none was willing to offer reserve prices ranging from 1.8 million yuan (225,000 U.S. dollars) to 40 million yuan (five million U.S. dollars).
The company told Xinhua Monday that the auction was intended to test the market price potential for the properties, in the same way as an antique or art auction would.
The homes, all nestled in downtown areas, covered areas ranging from90.3 square meters to a floor space of 1,365 square meters.
The auction house had conducted a market analysis that indicated the properties on sought-after locations and in traditional architectural styles based on feng shui, the traditional Chinese theory of harmonious design, would appeal to buyers with an overseas background, companies wanting "character" offices and individuals preferring courtyard-style accommodation.
However, the potential buyers shunned the asking prices, citing uncertainty over the future of the properties in the city's planning and the possibility of their demolition.
Hua Xinmin, a siheyaun conservationist, said the future of homes not listed in the government's designated preservation schedule was unpredictable.
To date, the municipal government has listed just 600 of Beijing's 3,000 courtyard houses for preservation.
Although market demand for courtyard homes is heating up, the transactions are often obstructed by complex property rights problems, as rooms in a courtyard house can be occupied by different owners.
Xu Chengfeng, a sales manager with an investment consulting firm, attended the auction on behalf of his company, which was looking for a downtown property. However, he said the company was concerned that almost all the properties required costly renovation to make them habitable.
The city's siheyuan are clustered in hutongs (lanes) and made of brick and tiles, and feature brick, wood and stone carvings. City regulations require owners to retain their architectural style in renovation, which means the use of traditional building techniques and materials.
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