Rumors fail to lift home prices in Tongzhou area

Speculation that the Beijing municipal government will move to a southeast satellite district has yet to give housing prices there much of a boost, with supply still outstripping underlying demand.

Rumors of a relocation have run high since late May, when a local social media account reported that the Beijing municipal government would relocate to Tongzhou district. The new site, it said, would be Lucheng, at the eastern end of Subway Line 6. That is about 33 kilometers east of Tian'anmen Square in central Beijing, where the municipal government is now based.

The rumored relocation would be part of a broad official strategy to integrate the Beijing-Tianjin-Hebei region into a megalopolis, which involves dispersing people and facilities to relieve pressure on infrastructure in the capital itself.