According to Sina Finance, after more than four months, the first batch of centralized land supply in 22 key cities in China ended on June 22. 

Statistics from the China Index Academy show that in this round, 469 residential lots were offered. Three hundred ninety-seven were finally sold with total revenue of $74 billion, down 53% year on year.

The transaction area of residential land was 40% less than last year’s first batch.

Land for construction witnessed the same downward trend with around 21.35 million square meters (1 sq. m is about 1.2 sq. yards) launched, a decrease of 58.5%.

A plunge of 62.9% was seen in the planned construction area of 39.07 million square meters compared to last year’s first round.

Regarding city distribution, Hangzhou dominates with 60 properties, followed by Chengdu with 50 and Shanghai with 40. By contrast, Shenyang and Changchun released the smallest number of land properties, with only 5 and 2 respectively.

In terms of the average floor price, $4,300/square meter was recorded in Beijing, making the capital the most expensive city. Xiamen and Shanghai ranked second and third with the price of $3,700 and $2,800 per square meter.

In this batch, local governments have offered many initiatives to enterprises, such as lowering the deposit threshold and canceling the sales price limit of some land parcels. Moreover, they have given significant concessions regarding rules to ensure the successful land transfer.

However, most private enterprises have shown their hesitation in land auctions.

A real estate company official says that this is not something that can be solved by lowering the threshold for land acquisition. He adds that 60% of the top 100 real estate companies have suspended land acquisition in the first five months of this year. Only 34% have acquired land.

At present, the second batch is about to be organized in Beijing. However, the warmth has not yet spread to the land market.

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