Beijing land price premium tops 300%

Beijing's last land auction of 2009 ended with whopping average premium rate of 330 percent. The surprise is that some of the lots aren't in the city center.

Three of the seven parcels of land are in the suburbs in Beijing. Fierce bidding drove the lot in the Fengtai District to 533 million yuan, a premium rate of 430 percent.

The highest premium rate was 600 percent. That parcel is in the remote suburb, Mentougou District. The floor price was above 9,000 yuan per square meter. That's two to three-thousand yuan above the area average.

The bid winner said, "The price is ok. It's actually a bit high. The floor price of the land is about 9,000 yuan per square meter."

Sources say most of the bid winners are small and medium sized developers, rather than big names.