The cancellation of land auctions in 17 cities has increased the "temperature difference" between the highest priced plots
2023-11-17
According to monitoring data from the China Academy of Land and Rural Development, 19 out of 22 cities that have adopted the "two centralized" land transfer method have successively issued new notices for listing their homesteads. Currently, 17 cities, including multiple provincial capital cities, have cancelled the land auction price limit. Recently, the results of the first batch of urban land auctions to lift land price limits have also been released. From the results, it can be seen that the high-quality land market in various regions has received good feedback, but the differentiation between hot and cold is still significant. Specifically, on October 30th, Jinan welcomed its first land auction after canceling the maximum price limit for land auctions. Excluding the two plots that were terminated, a total of 10 plots were sold, with a total revenue of 4.15 billion yuan, of which two plots had a premium rate of over 50%. According to Yuan Binbin, the general manager of Shandong Real Estate at Zhongzhi Research Institute, the most intense competition in this land auction is the cluster plot west of Fenghuang North Road and south of Shangmao City Road. The plot attracted 8 companies to sign up, and after 241 rounds of bidding, it was ultimately won by China Power Construction with a total price of 695 million yuan, with a premium rate of 53.1%. On November 2nd, Hefei also welcomed its first land auction after the cancellation of price limits and lottery. On that day, 5 plots of land were sold in the urban area, with a total transaction area of approximately 702000 square meters and a total transaction amount of approximately 7.7 billion yuan. Liu Min, General Manager of the Hefei Branch of China Securities Research Institute, told Securities Daily that the most intense land auction competition on that day was the BK202305 Binke City plot. The plot attracted 11 companies including Poly, Hefei Urban Construction, Yuexiu, and Anhui Expressway to register, and was ultimately won by Anhui Expressway with a total price of 3.388 billion yuan, with a premium rate of 44.9%. On November 15th, after Chengdu returned to free bidding, the first round of land auctions showed that 27 real estate companies participated in the bidding of 7 plots of land, with a total transaction area of 306 acres and a total transaction amount of about 5.7 billion yuan. The average premium rate was 6.9%, and 46 rounds of popular land auctions were held, with a premium of 30%. In response, the relevant person in charge of the Sichuan company of China Securities Research Institute told Securities Daily that Chengdu's land auction has 7 plots, some of which are located in mature areas of the main city, and the land conditions are good. Among them, the popular plots with 46 rounds of on-site bidding were ultimately won by China Resources Land at a 30% premium, which is also the first plot in Qingyang District with a floor price exceeding 20000 yuan. Overall, after the lifting of the land auction price limit, high-quality land plots have led to a rebound or slight increase in land prices, but there are still many bottom price transactions, resulting in a gradual increase in the "temperature difference" between land plots. On October 30th, there were 4 premium transactions and 6 bottom price transactions in Jinan's land auction; On October 15th, the three parcels of land sold at a premium in Chengdu's land auction were all located in the Wucheng District of Chengdu, but the remaining four parcels were sold at the base price. In the view of the relevant person in charge of the Sichuan Company of Zhongzhi Research Institute, with the lifting of restrictions on land prices, fresh water prices for new houses, and decoration prices, as well as the cancellation of the guiding price mechanism for second-hand houses, the competition for high-quality land plots in high-quality areas by development enterprises will become increasingly fierce. The era of fully competing for financial strength, product strength, service strength, and brand strength has arrived. Song Hongwei, Research Director of Tongce Research Institute, also told Securities Daily that due to the current investment and land acquisition strategies of real estate enterprises returning to first and second tier cities, it is expected that other core cities will also form more differentiation in the future
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：Securities Daily
Special statement: if the pictures and texts reproduced or quoted on this site infringe your legitimate rights and interests, please contact this site, and this site will correct and delete them in time. For copyright issues and website cooperation, please contact through outlook new era email：lwxsd@liaowanghn.com
Economy
Recommended Reading Change it 
Home
