Line 4 boosts property prices

(China Daily)
Updated: 2009-09-24 09:06

The upcoming launch of subway Line 4 has sent the price and rent of local properties soaring, a real estate agent says.

The line, which links the Summer Palace and Peking University in northwest Beijing with the shopping malls in Xidan and traditional opera houses in the south, will cut travel time for commuters, and also bring popular shopping clusters within minutes of each other.

Zhao Jing, a housing agent specializing in properties along the new subway line, said rented apartments were most in demand.

There is also strong interest in second-hand houses near the Zhongguancun area, rented apartments near Xidan, and new apartments in Fengtai district in southern Beijing, he said.

"The price increases began in February this year when people realized the new line would be very convenient for them, and would allow them to buy an apartment in a previously remote area of the city," Zhao told METRO.

Huang Tao, a 28-year-old engineer, who lives in a rented apartment on Niujie, or Ox street, in the southern part of the city, said he felt the price hike was reasonable.

The new subway line, which will open on Friday, will pass through Huang's area, bringing almost 500,000 passengers per day along its 24 stations dotted on a length of nearly 29 km.

Huang said he is now thinking of buying a property near Zhongguancun, where there will be several Line 4 stations.

"Property prices may be relatively high, but each renminbi note will be worth it because the area is so rich in culture and entertainment, with all the universities, shopping centers and nightclubs," he said.

Zhao said the property price increase had reshaped the market in the Majiapu area, which was a one-hour journey from the downtown area before the metro line.

Majiapu properties were formerly priced between 5,000 to 8,000 yuan ($732 to $1,172) per sq m.

Today, the price for the same apartment has risen to nearly 20,000 yuan per sq m, and demand is so strong there are no guarantees that one will be available.

Second-hand apartments are also in demand along the new Line 4, forcing prices upwards.

"Next to follow will be the rents," said Zhao.