Penthouses go on sale at 500 million yuan

The developer of a luxury housing complex in Beijing has caused a media sensation by defying the property downturn and putting some of the units on the market at a record price of 500,000 yuan ($80,650) per square meter.

The complex consists of nine buildings, each with four penthouse residential units measuring about 1,000 sq m. Described as "hanging courtyards", the apartments each have a pool, spa, banqueting hall and other luxury features. The price tag is between 360,000 and 500,000 yuan per sq m - a unit cost of 360 million to 500 million yuan.

However, none of the apartments in this price range has been sold, and analysts doubt the marketing effort will be a success, because a serious oversupply is set to weigh down on prices in the capital's high-end residential sector.

The price per square meter is the highest yet on the Chinese mainland. The average price of a new home in Beijing is 32,343 yuan per sq m, according to the China Index Academy.

The project, close to the Fourth Ring Road in Chaoyang district and adjacent to the embassy area, is being developed by Beijing Xinjingrun Real Estate, a subsidiary of Hong Kong-listed Hopson Development Holdings.

Geng Linlin, a receptionist, told China Daily that the developer has not yet decided whether the penthouses will be sold, and said they may be retained by the company.

There are about 900 other units measuring between 450 and 520 sq m in the complex, most of which are still under construction. The price tags for these are at between 130,000 and 150,000 yuan per sq m. Media reports said the latest promotion resulted in only two sales.

Zhang Dawei, chief analyst at Centaline Property Agency, said the prices set the development apart from other high-end projects. In Beijing, apartments costing between 50,000 and 70,000 yuan per sq m are considered "high-end", and those selling for between 100,000 and 180,000 yuan are in the "top luxury" category. He estimated that three to four "top luxury" projects and 22 "high-end" projects are in the pipeline in the capital.

Wangyan Wenhao contributed to this story.

zhengyangpeng@chinadaily.com.cn