BEIJING, May 27 -- The Ministry of Land and Resources said it will survey the cost structure of residential property as part of its annual investigation of land prices.
The survey covers 35 cities, including Beijing, Shanghai and Guangzhou, and the result is due on July 15.
The National Bureau of Statistics conducted a survey of the amount spent on commercial residential property development in 40 cities last year, but has not disclosed the result.
The All-China Federation of Industry and Commerce said last year that the land prices accounted for 58.2 percent of property development cost. But the ministry said in its report that land prices accounted for 23.2 percent on average, according to a survey report in June 2009 for over 600 property projects.
In 2009, more capital was invested in property, and more companies entered the industry, including State-own enterprises.
But Feng Lun, chairman of Beijing Vantone Real Estate Co, said publicly last year that property developers on average made less than 5 percent return on assets, and Ren Zhiqiang, chairman of Huayuan Property Co, said the margin was 8 percent on average.
An official announcement in 2005 by the pricing department in Fuzhou city, capital of Fujian province in South China, disclosed the costs of 23 local commercial residential properties varied from 1,636 yuan to 3,094 yuan ($239.6 to $453.1) per square meter, but the average selling prices were from 2,500 yuan to 5,500 yuan per square meter, bringing profits of 50 percent on average.
The survey also collects information on the amount spent on construction and taxations from agencies, sources said.