The premium rate has reached its peak, and the star plot within Beijing's second ring road has fallen to the ground
2024-07-04
Beijing's land auction market is experiencing a resurgence of lottery and land acquisition. On July 3rd, three residential plots in Beijing were successfully sold, with a total transfer amount of approximately 4.47 billion yuan. Among them, the transaction amount of Dongcheng Jinyuchi plot was 337.5 million yuan, with a premium rate of 25%, and it was successfully won by Hebei Xinjie through a lottery process. It is understood that this is also the first time Hebei Xinjie has acquired residential land in Beijing. The reason why the Jinyuchi plot in Dongcheng, Beijing has received so much attention is partly due to the lack of new residential land supply in the area for a long time. The last residential land was the Yongding Prefecture plot that was sold in June 2017. On the other hand, the Dongcheng Jinyuchi plot has broken through the 15% premium rate limit set by the previous Beijing land auction rules, increasing the premium rate for land auctions to 25%, and implementing a tiered pricing method. According to the transfer documents, the rare mini plot within the Third Ring Road has a land area of approximately 3027.63 square meters on the Dongcheng Jinyuchi plot, with an above ground construction scale of 5550 square meters. The land is classified as F2 public mixed residential land, with a residential construction area of approximately 1700 square meters and a commercial construction area of approximately 3850 square meters, and the developer is required to hold it for 20 years. After the 31st round of intense competition, the plot reached the price limit of 337.5 million yuan, triggering the lottery process, and ultimately won by Hebei Xinjie through the lottery. "In terms of location, the plot has a superior and extremely scarce geographical location. The plot is located within the Southeast Second Ring Road, about 2 kilometers from Tiananmen Square, and only 350 meters from the Temple of Heaven Park." According to Yue Wei, an analyst at Beijing Lianjia Research Institute, the surrounding rail transit includes Qiaowan Station on Metro Line 7 and Zhushikou Station on Metro Line 8. The south side is adjacent to Tiantan Park and schools, enjoying multiple resources of transportation, education, and ecology in the core functional area of the capital. The Beijing Business Daily reporter noticed that residential projects such as the Jinyuchi plot, located in the core area of Beijing, with convenient transportation and surrounding the Temple of Heaven, can be traced back to the "Temple of Heaven Mansion" developed and constructed by Beijing Jinyu Jiaye Real Estate in 2003. In addition to its enviable geographical location, the land area of the Jinyuchi plot can be said to be the most "pocket sized" in the urban area of Beijing in recent years. Within the Second Ring Road, there is a subway line 7 Qiaowan Station near the north side of Temple of Heaven Park, and the Dongcheng Jinyuchi plot is truly located in the core area. However, the available development area of the plot itself is not large, with a building scale of only 5550 square meters, and it is a mixed residential land for F2 public buildings. There will not be too many residential products entering the market in the future. The Dongcheng Jinyuchi plot is also a rare mini plot within the Third Ring Road of Beijing in recent years. There has been no new residential land supply in Dongcheng District for many years, and the last residential land was the Yongdingfu plot that was sold in June 2017. Now that such a mini plot has been sold, the land acquisition company is not a well-known real estate company. What kind of products will be produced in the future still needs to be further observed. The premium rate has reached its peak. In addition to the mini plot itself, the Dongcheng Jinyuchi plot has also exceeded the 15% premium rate limit set by the previous Beijing land auction rules, with a maximum of 25%. According to the transfer documents, the starting price of the plot is 270 million yuan, and the reasonable upper limit price of the land is set at about 338 million yuan. When the bidding price reaches the reasonable upper limit price of the land, higher bids will no longer be accepted, and the winner will be determined through on-site lottery. With the increase of premium rate, the sales guidance price of the plot has also been adjusted accordingly, with a maximum of 151000 yuan/square meter. It is reported that the plot will set the pre-sale guidance price for future commercial housing at three levels. When the premium rate is within 15%, the pre-sale guidance price for future commercial housing will be 139000 yuan/square meter; When the premium rate is between 15% and 20%, the pre-sale guidance price is 143000 yuan/square meter; When the premium rate exceeds 20%, the pre-sale guidance price is 151000 yuan/square meter. The specific prices of the three guide prices can fluctuate up or down by 8%. Zhang Kai, the head of land market research at Zhongzhi Research Institute, stated that the Dongcheng Jinyuchi plot has exceeded the 15% premium rate limit for the first time, reaching a maximum of 25%. This is the first plot in Beijing to exceed the 15% premium rate limit since the second batch of centralized land supply in 2021. In addition, the sales guidance price also adopts a tiered pricing method based on different premium rates, better achieving the maximization of land value. According to the data from Beike's housing search, the surrounding communities of Jinyuchi plot, such as Qianmen Front, Jinyuchi West District, Jinyuchi East District, etc., have second-hand housing listed at prices ranging from 80000 to 110000 yuan/square meter. Newly built residential buildings outside the second ring road, such as Beijing Urban Construction · Temple of Heaven Mansion and Yongdingyue, are priced at 139000 yuan/square meter according to the official website of Anjuke. What will be the future market performance of the Jinyuchi plot, which is higher than the guide price of 10000 yuan/square meter for newly built houses in the surrounding area? Regarding this, Guo Yi, Chief Analyst of Heshuo Institution, stated that the location of the Jinyuchi plot is in the core area, and there is still some room for increase compared to the sales guidance price of 151000 yuan/square meter for CITIC Guoanfu and CITIC City Phase 5. Therefore, from the perspective of residential transformation, there will not be particularly high difficulty. Injecting new energy into market confidence, promoting high-quality land supply, and lowering mortgage interest rates and down payment thresholds through policies will further stimulate market demand. In the view of industry insiders, optimizing and adjusting land supply plans to increase the supply of high-quality land can not only attract more real estate companies to participate in bidding, but also stimulate market vitality. Against the backdrop of destocking in the real estate industry, some high-quality land parcels that are under pressure will gradually be pushed to the market. From the list of residential land to be supplied in the second round of 2024 released by Beijing, it can be seen that more than 80% of the 23 plots involved are located in areas with convenient transportation and mature supporting facilities such as rail stations. The combination of location advantages and favorable policies has effectively driven the recovery of the real estate market. According to Guan Rongxue, a senior analyst at Zhuge Data Research Center, in the current land auction market with insufficient overall confidence in the industry, the release of high premium land parcels is also injecting new momentum into market confidence, which may stimulate more real estate companies' enthusiasm for land acquisition. This is also a small highlight in the process of market recovery. The financial pressure on real estate companies has not completely improved yet, and land acquisition is still mainly cautious, but there are also high-quality land parcels in core first and second tier cities showing a hot situation. Yue Wei also agrees that the adjustment of land auction rules and tiered pricing rules can help maximize land value and provide support for development enterprises to build "good houses". Beijing issued a notice on June 26th, clarifying a series of real estate policies such as lowering down payment ratios and loan interest rates. Beijing Business Daily reporters also visited multiple new housing developments. Driven by the policy adjustment in Beijing, the willingness of homebuyers to buy a house has been further released, and the number of visits and contracts for the property has shown a doubling trend. Several sales managers told reporters that many homebuyers who had previously held a wait-and-see attitude came to the sales office on the first weekend of the notice issued in Beijing to complete the signing of the purchase contract. Regarding the rapid response of the market, Yan Yuejin, the research director of E-House Research Institute, stated that high-quality products can only be favored by homebuyers. The increase in Beijing's premium rate will help attract more real estate companies to participate in land auctions, increase market competition, and in the fierce market competition, real estate companies will pay more attention to product innovation and quality improvement. This will help drive product upgrades and quality improvements throughout the industry, ultimately enabling homebuyers to live in more comfortable new homes. (Lai Xin She)
Edit：Lubaikang Responsible editor：Chenze
Source：Beijing Business Daily
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