Guangzhou Land Prices Plunge 40% in August

Guangzhou Hotels
Updated: 9/11/2009 6:13:00 PM

Guangzhou, the capital of Guangdong Province, saw the average transaction price for undeveloped land in its ten districts reach RMB 2,494 (365.2 USD) per square meter in August, a plunge of 40% at most from a month earlier, according to statistics from Centaline Property Agency Ltd. 

Last month, Guangzhou sold five pieces of land, four parcels of which were sold in an auction on Aug. 18. A local firm bought one of the parcels for RMB 2,333 (341.3 USD) per sq m. Another local firm acquired another of the parcels for RMB 4,652 (681.3 USD) per sq m. Two pieces of land were purchased by Agile Property Holdings Ltd. for a total of RMB 717 million (105 million USD).

Country Garden Holdings Co Ltd. on Aug. 28 obtained a parcel in Nansha District for RMB 240 million (35 million USD) or RMB 1,506 (220.5 USD) per sq m.

Reportedly, the ten districts of Guangzhou saw the average transaction price of properties hit RMB 10,600 (1,551.1 USD) per sq m, a year-on-year increase of 21% or a month-on-month increase of 3%. The property transaction price was RMB 13,400 (1,960.8 USD) per sq m in the city's six major districts, a decline of nearly RMB 900 (131.8 USD) per sq m from a month earlier. In Tianhe District, the average transaction price swelled 54% year on year or dipped 5% month on month, reaching RMB 17,520 (2,565.7 USD) per sq m.