A 6.7-square-meter house in Xicheng District of Beijing. (Photo/China News Service)
(ECNS) -- A 6.7-square-meter house in Xicheng District of Beijing set a record after it was sold online for 2.5 million yuan ($386,000), partly because the new homeowner could get hefty compensation for a renovation project following demolition.
The starting price for the house was 600,000 yuan at the auction and 49 people joined the bid to finally raise it to the whopping 2.5 million yuan, or 373,000 yuan per square meter.
The bungalow, built before 1949 in Tongjing Compound south of West Chang'an Avenue, is adjacent to the National Centre for the Performing Arts, only a 10-minute walk to Tiananmen Square.
Visitors need to pass a narrow aisle about a meter wide to enter the compound, which has four bungalows. The house sold has only one sink behind the door and no toilet. Its walls and floor are dotted with damp spots, and it smells musty.
Fengtai District People’s Court, responsible for the auction, said the house's owner was involved in a private lending dispute and the property under his name was seized and auctioned in accordance with the law.
“I did not expect the price of the house to go so high,” said Guo Cuicui, a judge.
A local resident said all the bungalows are within an area to be renovated and compensation includes a cash subsidy of 135,000 yuan per square meter plus a resettlement home that can be purchased for much lower than the market price.
Zhang Dawei, chief analyst with Centaline Property, said bungalows should not be valued by their unit prices because they have other advantages. He said homeowners can get a cash subsidy of up to 200,000 yuan per square meter.
Beijing has increased checks on bungalow sales since 2017, demanding complete information about the house's size, status of land permit and information of renovation, according to housing agents.
