Major property developers in Beijing's residential market will launch more high-end projects in the future due to increasing financial pressure, according to a report from JLL on Monday.
"Under the context of monetary tightening, more high-end projects are expected to appear in Beijing's residential market in the next few months," according to Mi Yang, agent manager of JLL's research department in Beijing and North China.
For instance MaoYuan Real Estate, a major property developer in China, will launch its high-end villa project in Beijing's central urban district in the future, aiming to use location advantages and low population density to appeal to high-end consumers.
According to the report, a total of 55 villas entered the market in the third quarter of 2018, a 44.7 percent comparative increase from Q3 2017.
As property developers use price-cutting as a strategy to increase sales, the price of high-end villas in Beijing fell 2.3 percent by the same metric, according to Mi.
The overall new supply in the top-end residential market in Beijing has seen a 110 percent increase, while the transaction area has seen a 69 percent increase, according to a report from Savills.
Fan Hang contributed to this story.
