Developers Are Optimistic Again

SCMP: China's developers replenish land banks on recovery hopes
Chinese developers loosened their purse strings at the start of this year to replenish land banks in first-tier cities and a few second-tier ones on high expectations they will be the first areas to see a housing market recovery due to policy relaxation.

However, analysts warned that if reality fell short of expectations, interest would quickly cool, resulting in a similar pattern to the one seen last year. Possible catalysts for such disappointment mainly lurk on the policy side, including a serious effort to push ahead with property ownership registration next month.

A pilot scheme to blacklist developers who fail to pay land premiums in a timely manner or begin construction as scheduled, reportedly set to start this year in 11 cities including Chongqing and Nanjing, would also make developers rethink aggressive land bank building, analysts added.

Land sales in Beijing remain strong. Developers snap up Beijing plots
Beijing’s land market is warming up again, with three mixed-use sites sold for 3.6 billion yuan on Tuesday, raising the total land sales to 40.9 billion yuan since January, according to mainland property data provider SouFun Holdings.

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