Real estate markets in Kaohsiung and Beijing show caution amid policy shifts

Real estate markets in Kaohsiung and Beijing are showing signs of caution as new regulations and monetary policy uncertainty impact land auctions.

In Kaohsiung, the city government has announced its third-quarter land auction, featuring seven plots and nine building sites with a total minimum price of 1.52 billion TWD. The auction, scheduled for September 16, occurs just one day before the Central Bank's quarterly meeting. Experts express skepticism regarding the success rate of these auctions, noting that developers are maintaining a cautious stance due to uncertainty surrounding potential interest rate adjustments and credit controls.

In Beijing, recent land auctions have cooled significantly following new regulations regarding the sale of completed homes. A high-value auction in the Chaoyang district was unexpectedly suspended before bidding began. Meanwhile, a plot in the Shunyi district was won by China Resources Land for 8.299 billion RMB after 174 rounds of bidding. Analysts suggest that new rules requiring priority for completed home sales are lengthening the capital recovery cycle for developers, forcing them to be more selective and cautious with land acquisitions amid rising housing inventory.