China H1 residential land cost 13% lower

BEIJING: China's land market cooled in the first half, with transactions and prices falling after a spate of government measures to curb housing inflation, a private data provider said yesterday.

Average land cost for residential use in 130 cities dropped 13% in the January-June period from a year earlier to 1,451 yuan (US$225) per sq m, the China Real Estate Index System (CREIS) said.

The private data house, which is affiliated to Soufun, the country's largest online real estate firm, also said that transactions of residential land fell 6% in the first six months from a year earlier to 162 million sq m.

The lower prices and slack transactions discouraged local governments to sell their land.

Land supply for residential use declined by 15% in the first half from the same period of 2010 to 195 million sq m, despite a quickened pace in June, the CREIS said.

By Reuters