With an average price of 300,000 yuan (US$46,140) per sq m, the No.7 Diaoyutai complex, with more than 1,000 square meters, in Beijing has become the most expensive residential compound in Asia. However, discussions and questions about the complex are far from over.
The National Development and Reform Commission (NDRC), China's top economic planner, is researching anti-excessive profit measures to crack down on violators in the real estate sector, Xu Kunlin, head of the NDRC's pricing supervision department, said at an interview in April, National Business Daily reports.
A complex of more than 1,000 square meters is beyond the normal demand of house buyers, and the real estate developer has intended to sell other apartments which are less expensive by raising the price of the complex to such a sky-high level, said an anonymous developer.
"The real estate company will not possibly sell the complex, and it may be available for renting or mortgage," the developer told National Business Daily.
The SINOBO Group invested in the No.7 Diaoyutai complex in 2006. It is estimated that the cost of the project is not more than 4,0000 yuan (US $6,172) per sq m.
"The complex is priced by the real estate company, and it needs further investigation to verify whether the project is excessively profitable or not," said an official from Beijing Municipal Commission of Housing and Urban-Rural Development.
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China's business press carried the story above on Tuesday.
