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China / Society

Beijing housing price hits 500,000 yuan per square meter

(Ecns.cn) Updated: 2015-06-17 13:55

Beijing has set a new housing price record of 500,000 yuan (about $80,550) per square meter for a courtyard-style property, China Business News reports.

The first five months of this year saw 2,004 houses with price tags over 10 million yuan sold in Shanghai, a 109 percent increase from the same period in 2014. It is expected that over 5,000 luxury houses will be sold in the metropolis in 2015, setting a new record.

In Beijing, more than 52 houses worth over 20 million yuan were sold from June 1 to 15. Over 90 such expensive houses are expected to sell in June. Sales of high-end houses that were over 60,000 yuan per square meter peaked in May in Beijing, with over 240 sold.

The pricing philosophy behind luxury houses is no different than that of regular residential houses, said Guo Yi, marketing director of Yahao Real Estate Selling & Consulting Solution Agency.

Factors such as expense, competition, quality and product type all influence how prices are set for luxury houses. In addition, the turnover ratio of real estate agents can affect prices, according to Guo.

Guo also said the number of expensive house buyers is comparatively limited, so the pricing methods vary a lot. "A higher price can add to the sense of mystery," he said.

Meanwhile, luxury house owners are seeing a "youth movement," according to insiders. People born in the 1980s, especially those from professions in finance, investment and the Internet, are buying more, said Ma Yan, a marketing director for a real estate project in Beijing's Haidian district.

The supply of luxury houses is also expanding. Over 1,000 luxury houses are expected to be available in 2015 in Beijing.

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