High-end properties in Beijing to see gradual price rise

The high-end properties in Beijing will see a steady price increase in the second half of this year due to the decreased market supply, industry insiders said.

"Due to the government's tightening of real estate policies and the tepid market since last year, quite a number of high-end projects in the capital postponed their entry into the market, thus reducing the market supply," said Li Xiang, a senior manager in Research and Consultancy Department of Savills, an international real estate service provider.

The demand from wealthy people to improve their living standards, however, will not be much affected, and the value of high-end residential products will continue to rise, according to Anthony McQuade, managing director of Savills for the Northern China market.

"Fundamentally, there is still a strong demand," McQuade said.

Beijing's pre-owned home market saw a rebound in inquiries and transactions in the first quarter of 2018. "In the near future, a modest rebound might be possible," said McQuade.

With the market stabilizing, an increasing number of high-end projects are expected to enter the market.

Shimao Group, a Hong Kong-listed property developer, for instance, is going to launch its luxury villa project "Loong Palace" in Beijing in June.

Liu Hui, vice-president of Shimao Group, said it is the company's top project, but did not disclose the selling price.

Fan Hang contributed to this story.