Is the real estate bubble reflating? Now Beijing sees a new land auction high

Following last month's record auction in Guangzhou, Beijing sees a record price for residential land:
Record price paid for site in Beijing

Sinobo Group, a private local developer, won the Haidian site in a land auction with the 46th bid of 2.63 billion yuan (HK$3.21 billion), or 33,831 yuan per square metre. This surpassed the previous record for a residential site, in Shunyi district, which sold for 29,859 yuan per square metre in 2009.

The developer's offer included allocating 16,400 square metres of floor area for subsidised housing. Excluding this area, David Zhang, a director of research at Centaline China in Beijing, estimated the land price was 41,500 yuan per square metre, making it the most expensive residential site in the country.

..."The land supply in the 4th Ring Road area is very tight. Prices of nearby housing estates range between 60,000 and 70,000 yuan per square metre. Developers are optimistic about property prices in the area."

...Wang believes the winning bidder will have to sell flats there for 80,000 yuan per square metre to generate a reasonable profit.

Fourth ring is quite far from the city center and Haidian is underdeveloped compared to the eastern part of the city.