BEIJING -- The first ever
auction of Beijing's historic courtyard houses has been aborted after buyers
refused to meet the reserve prices for fear the buildings could face demolition.
The Beijing Shengjia International Auction Co. Ltd was putting the property
rights to 17 traditional "siheyuan" homes under the hammer, but abandoned the
sale in less than an hour.
A company spokesman said the auction held in the Xiyuan Hotel in Beijing on
Saturday attracted plenty of interested buyers, but none was willing to offer
reserve prices ranging from 1.8 million yuan (US$ 225,000) to 40 million yuan
(US$ five million).
The company told Xinhua Monday that the auction was intended to test the
market price potential for the properties, in the same way as an antique or art
auction would.
The homes, all nestled in downtown areas, covered areas ranging from 90.3
square meters to a floor space of 1,365 square meters.
The auction house had conducted a market analysis that indicated the
properties on sought-after locations and in traditional architectural styles
based on feng shui, the traditional Chinese theory of harmonious design, would
appeal to buyers with an overseas background, companies wanting "character"
offices and individuals preferring courtyard-style accommodation.
However, the potential buyers shunned the asking prices, citing uncertainty
over the future of the properties in the city's planning and the possibility of
their demolition.
Hua Xinmin, a siheyaun conservationist, said the future of homes not listed
in the government's designated preservation schedule was unpredictable.
To date, the municipal government has listed just 600 of Beijing's 3,000
courtyard houses for preservation.
Although market demand for courtyard homes is heating up, the transactions
are often obstructed by complex property rights problems, as rooms in a
courtyard house can be occupied by different owners.
Xu Chengfeng, a sales manager with an investment consulting firm, attended
the auction on behalf of his company, which was looking for a downtown property.
However, he said the company was concerned that almost all the properties
required costly renovation to make them habitable.
The city's siheyuan are clustered in hutongs (lanes) and made of brick and
tiles, and feature brick, wood and stone carvings. City regulations require
owners to retain their architectural style in renovation, which means the use of
traditional building techniques and materials.
