Beijing to see a surge in supply and transactions of luxury property

The supply and transactions of Beijing’s luxury property are to reach a record high this year, industry experts said.

Guo Yi,marketing director of real estate consultancy company Yahao, said the sales of projects valued around 20 million yuan each unit reached 470 in the first five months of this year in Beijing, triple that of the same period last year. And the average price increased by 15 percent year-on-year.

Statistics from real estate brokerage company Centaline China showed that more than 60 projects with unit price higher than 100,000 yuan per sq m will enter the Beijing market this year.

Sunac Chairman Sun Hongbin believed there is still room for top luxury projects in the capital. "I will not be surprised if there are projects with a unit sales price exceeding 400,000 or even 500,000 yuan per sq m in Beijing," said Sun.

The highest unit price of Sunac's project "One Sino Park" will exceed 300,000 yuan per sq m, according to Sun. That will make the project the most expensive one in Beijing and possibly the country. The company bought the land parcel of this project in 2013, with the floor price of 730,000 yuan per sq m, making it the "land king" in the country at that time.

According to Zhang Dadong, marketing chief of Tianrun Tongtai Estate who runs a project "The Royal Gifts", the major customers of such luxury products are those new rich aged between 30 to 40 mainly working in finance and IT sectors. The sales price of the project, which is located outside the capital’s northern fifth ring road, has reached 80,000 yuan per sq m.