Apr. 19, 2012 (China Knowledge) - Land sales in 130 Chinese cities plunged 30% year on year to 230.53 million square meters in the first three months of this year, due to low land purchase sentiment as a result of expectations of possible declines in property prices, according to a recent report released by China Index Academy.
During the period from January to March this year, the 130 cities auctioned 5,752 pieces of land, 24% less than in the same period of last year. The figure included 1,534 plots for residential properties that have a combined area of 69.21 million sq m, reflecting year-on-year decline of 46% and 51%, respectively.
The academy said that the average sales price of plots in the 300 cities also experienced decline, down 22% year on year or 20% quarter on quarter to RMB 788 per sq m of floor area. The average sales price of land for residential properties fell 12% year on year or 12% quarter on quarter to RMB 1,119 per sq m of floor area.
China's capital city Beijing
saw its land sales revenue fall nearly 40% to RMB 9.67 billion in the first quarter from RMB 15.9 billion in the same period of last year, with average sales price dropping 25.8% year on year to RMB 2,706 per sq m of floor area.