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The first ever auction of Beijing's historic courtyard houses has been aborted after buyers refused to meet the reserve prices for fear the buildings could face demolition.

 

The Beijing Shengjia International Auction Co Ltd was putting the property rights to 17 traditional siheyuan homes under the hammer, but abandoned the sale in less than an hour.

 

A company spokesman said the auction held in Beijing's Xiyuan Hotel on Saturday attracted plenty of interested buyers, but none were willing to offer reserve prices ranging from 1.8 million yuan (US$227,675) to 40 million yuan (US$5.1 million).

 

The company stated yesterday that the auction was intended to test the market price potential for the properties, similarly to an antique or art auction.

 

The homes, all nestled in downtown areas, covered areas ranging from 90.3 square meters to a floor space of 1,365 square meters.

 

A market analysis had indicated the properties were in sought-after locations and had been built according to traditional fengshui styles, and that this would appeal to overseas buyers, companies wanting offices with character or even to individual preferences.

 

However, the potential buyers shunned the asking prices, citing uncertainty over the properties' future in view of potential demolition by city planning officials.

 

Hua Xinmin, a siheyuan conservationist, said the future of homes not listed in the government's designated preservation schedule was unpredictable. To date, the municipal government has listed just 600 of Beijing's 3,000 courtyard houses for preservation.

 

Although market demand for courtyard homes is active, transactions are often obstructed by complex property rights problems, since rooms in a siheyuan house can be owned by different owners.

 

Xu Chengfeng, a sales manager with an investment consulting firm, attended the auction on behalf of his company, which was looking for a downtown property. However, he said the company was concerned that almost all the properties would require costly renovation, showing sometimes more pressing fears than potential demolition.

 

The city's siheyuans are clustered in hutongs and built from bricks and tiles, featuring wood and stone carvings. City regulations require owners to retain this architectural style through renovation, specifically using traditional building techniques and materials to preserve the siheyuan authenticity.

 

(Xinhua News Agency October 17, 2006)