State-owned firms break china land price record

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State-owned firms break china land price record

16 Mar 2010

Two state-owned firms have caused controversy in China by purchasing land at record prices.

Fears of a property bubble had previously forcesforced the government to introduce calming measures to the market, but in one day two records were broken, reports Reuters.

The price per sq m record of a plot in Beijing exceeded $4,000 while a new high was also set for the total paid for a single piece of land – a Yizhuang site selling for $769 million.

Controversy has arisen amid complaints the system is biased in favour of state-owned firms by insisting all bidders have registered considered to be too high for private developers.is there a word missing somewhere in this sentence?

Liu Liyong, a research director at real estate company E-House China, told the publication the links between such firms and the government combined with vast capital reserves to ensure contracts would always go their way.

Chen Yunfeng, a real estate expert, told China.org he felt the availability of land would ensure prices would continue to climb in the next year. ADNFCR-1127-ID-19672142-ADNFCR