With the continuous creations of "land kings", the ratio of high-priced houses increases in the residential market of Beijing, said Zhang Dawei, chief analyst at Centaline Property .
Data shows that in the first half year of 2016, the floor price reached 16,435 yuan per square meter on average in Beijing, up 32.7% from the last year.
Zhang expressed that given a limited area of land for residential houses, Beijing is expected to see a trend of more expensive houses under construction in the future. For the time being, in the residential market, the ratio of houses with two bedrooms which are sold out has registered a sharp decrease. For instance, the ratio fell by about 12% in the past two years.
As for the selling price of the residential houses, it goes the same for another first-tier city Shanghai. Since the beginning of this June, the selling price for the newly built residential houses in Shanghai has gone up for three weeks straight and reached 36,121 yuan per square meter on average last week.
The rising land cost puts pressure on property developers in first-tier cities. Therefore, it might start a trend of building expensive houses in these cities.
