Land sales in Beijing reach three-year high

real estate agency Century 21st showed on Monday.

The sales of land for residential buildings soared 240 percent year-on-year to 127.8 billion yuan, with the average price of floor space rising 48.7 percent to 11,102 yuan per square meter, according to the report.

The soaring land value had an obvious impact on the expectation of homebuyers and property developers, said Kong Hailong, general manager of Century 21st Beijing.

Moreover, as more property developers returned to first-tier cities to grapple for land parcels, the competition for quality land parcels was strengthened thus buoying up prices, Kong added.

But as more affordable housing enters the market in 2014 and home purchase restrictions continue, the home price growth and transaction value will be lower than that of 2013, Kong forecast.