Shanzhai Land Recovery? 61% of First-Tier Land Sales Went to SOEs; 77% in Beijing

A bailout of local finances or just more speculative fever funded by cheap and easy access to credit? SOEs made up more than half of the top 50 land purchases and developers were forced to partner up in order to afford rising land prices. The article says the riskiest time for the real estate market may have passed, but it also uses an idiom to describe hidden risk from high land prices: "the flour is more expensive than the bread."

In 2015 the country's top 50 residential plots of land total turnover amounted to 244.915 billion, of which state-owned enterprises involved in turnover of 29 plots of up to 149.72 billion, accounting for 61%. The transaction price of more than 8 billion of six plots are all state-owned enterprises get.

In Beijing, for example, as of the end of November 2015, Beijing has turnover of 44 residential land, only 10 plots of private independent obtained were Vanke, Hengda, Xu Hui and so on. Another 34 plots, all or most of the participants are state-owned enterprises, the central enterprises.

From Union 2015 Beijing residential land alone to get to the situation, 77 percent of state-owned enterprises, but also the enthusiasm from the participating companies, the land market in competition with state-owned enterprises involved in most of the central enterprises dominated.

Another evidence of the land market is based on a high threshold syndication take to the increasing proportion, to Beijing, for example, this year 44 residential land, alone to get to only 25, the proportion of joint get to 43% in 2013 and 2014, the proportion was 22.4 percent above and 30.8%. Many companies have jointly take to the public that, in order to jointly take to share the risk.

iFeng: 2015“地王”回归:过半“国企制造”

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