June 14 (Bloomberg) -- The average price of Beijing’s luxury homes excluding town houses jumped to the highest in 17 months in May, as wealthy buyers favored bigger properties under the government’s purchase restrictions, a local agency said.
Apartments more expensive than 50,000 yuan ($8,155) per square meter (10.76 square feet) sold for 53,329 yuan on average, 5 percent higher than in April and rising for the fourth consecutive month, Yahao Real Estate Selling & Consulting Solution Agency said in an e-mailed report. Total sales surged 28 percent to 3.55 billion yuan, the realtor said.
New-home prices in Beijing rose by 3.1 percent in April from the previous month, the biggest gain among the nation’s four first-tier cities, as the capital’s property curbs, the country’s strictest, failed to deter homebuyers, according to SouFun Holdings Ltd. Those curbs have included minimum down payment requirements for second homes of 70 percent and a ban on single-person households from buying more than one residence.
“The super-rich buyers now like bigger, high-end properties more” as the government curbs make it more difficult to buy a second home, Gao Shan, Yahao’s deputy general manager, said in the report. “The scarcity of core urban land resources is driving up the value of luxury homes.”
Thirty five out of 56 luxury projects that were already open to subscription managed to sell 323 units last month in Beijing, compared with 325 apartments in April, according to Yahao. No new luxury projects became available in May as local officials rejected presale permits for projects deemed too expensive and developers delayed sales, according to the report.
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