Guangzhou cancels auction again as developer demand drops

The Chinese city of Guangzhou has cancelled a land-plot auction for the second time in two weeks.

No reason was given for the termination of the sale of 12 out of 18 available, announced by the Guangzhou Municipal Land Resources and Housing Administrative Bureau.

On October 22 the city also cancelled the auction of three plots.

Danny Bao, a Hong Kong-based analyst at Daiwa Securities Capital Markets, said: “Developers’ demand for land is not high in general, mainly because of the credit squeeze.”