Land authorities in Shenzhen reissued a notice about the second batch of centralized land sales, with the price premium for land capped at 15 percent.
It further lowered the sales price limit of housing to stabilize the market. The sales price limit of commercial residential houses in this batch of land is reduced between 3 percent and 9.2 percent compared to the previous ceiling, and the sales price limit of affordable commercial residential houses has been reduced by 2.8 percent to 9.1 percent compared to the earlier price limit.
It also pledged to make sure property developers purchase land with their own funds and tightened the credit scrutiny.
Several major Chinese cities, including Shenzhen, halted their second round of land auctions in recent weeks to adjust their policies to better regulate the housing market.
In other news, the Shenzhen-based residential developer China Vanke (2202) recorded a first-half net profit of 11 billion yuan (HK$13.24 billion), down 11.7 percent year-on-year, due to the decline in profit margin on projects. During the period, the operating profit margin decreased by 5.92 percentage points to 18.22 percent. Basic earnings per share for the period were 0.95 yuan, with no interim dividend declared. The company's revenue grew by 14 percent to 167.1 billion yuan.
Shenzhen has capped land price premiums at 15 percent. xinhua
