Chinese Cities Flooding Market With Land Sales

iFeng: 中国50大城市年内土地出让收入同比涨60% 溢价率走低
With the continuous push of the overall push of the hot cities like Hangzhou and Zhengzhou this year, the Chinese land market still shows a tendency of unabated activity around the Spring Festival.

The data released by Centaline Property Research Center on the 21st showed that since the beginning of this year, the total land sales revenue of the 50 cities with the most active land transactions reached 776.08 billion yuan (RMB, the same below), up 60.2% from 484.35 billion yuan in the same period of last year. .

During the year, the three cities with the highest revenue from land sales were: Hangzhou, Beijing and Suzhou. Among them, Hangzhou's land sales revenue reached 65.4 billion yuan, up 285% year-on-year; Beijing reached 57.3 billion yuan, up 353% year-on-year; Suzhou was 50.6 billion yuan, up 153% year-on-year.

In addition, 24 cities in Wuhan, Fuzhou, Guangzhou, Zhengzhou, Chongqing, Jinan, and Tianjin have more than 10 billion yuan in land sales income.
Premiums are coming down with the increased supply, and Beijing has seen multiple failed auctions in recent months.
It is worth noting that although land transactions are still active, however, affected by regulation, the premium rate of land transactions in hot-street cities continues to decline. Zhang Dawei, chief analyst of Centaline Property, pointed out that the premium rate of land transactions in many hot cities is about 10%, which is obviously lower than the average of 30% in the past two years.

Statistical data released by the Kerr Research Center also reflect similar trends. According to Wu Jialu, an analyst at the Krishna Research Center, in February this year, the land market continued to fall due to the impact of the Spring Festival holiday and most of the cities had fewer parcels of land for sale, but some cities rushed to consolidate more land before the end of the year, such as Shanghai, Land transactions in February in Xi'an and Wuhan were all active. In addition, from the perspective of supply, many hot-spot cities have entered the rhythm of land supply in the new year in late February.

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