China developers sit tight as land prices stay high

[HONG KONG] Chinese property developers wary of poor sales amid the country's industry downturn are giving expensive government land auctions the cold shoulder, with plots in the capital going unsold for the first time since April 2011.

The poor reception highlights the persistent mismatch in price expectations between developers and local governments.

Cash-tight developers are seeking lower prices while local authorities are refusing to budge because land sales account for the bulk of their revenues.