Beijing commercial property transactions surge

Transactions of commercial properties and office buildings in Beijing surged 320.5 percent in the first 10 days of March month-on-month, data from Century 21st showed on Thursday.

Around 759 units of commercial properties were sold and registered online by March 10, accounting for 6.3 percent of all the transactions recorded in the period. Compared with the same period of last month, the figure is up 320.5 percent, according to the Beijing-based real estate brokerage.

The surge in the commercial property transactions follows the latest moves by the State Council, China's cabinet, to control the property market.

The State Council said on March 1 that homeowners who sell their homes will be levied an income tax as high as 20 percent on the profit they make on a transaction. Prior to the new rules, the income tax levied was 1 to 2 percent of the sale price.

"It's obvious that investment-oriented purchases of residential housing will be further restrained and that the government intended to weaken the investment characteristics of home buying," said Kou Hailong, general manager of Century 21st Beijing.

"So it is a natural choice that more investors are turning their eyes to commercial properties when other investment channels are still limited," he added.