2014-07-14

Beijing Land Auction Unimpressive

Beijing held its first land auction in more than 100 days yesterday. Residential land in Changping sold for a 5.9% premium after 6 rounds of bidding. In Shunyi, a parcel sold for a 13.6% premium after 26 rounds. Centaline's Zhang Dawei said the premium was low because the reserve price was high.

Earlier in the year the land premiums were above 50% and Beijing sold more than ¥111 billion yuan worth of land in the first half of 2014, up from ¥65 billion in 2013.


北京下半年土地首拍 两宗土地均以低溢价率成交
July 14, has been quiet for more than two months of the Beijing land market re-shooting, launched the 21 neighborhoods and Shunyi, Changping Town, Shahe Town (Ponceau lake land development projects) two low density plots, volumetric rates are close to 1.0, the industry generally believe that high quality plots. However, compared with the first half of the grant, the intense level of competition the two parcels of land decreased significantly.

Two land premium rates are low turnover

Regardless of the number of enterprises from the quotation or bid premium rate case or two plots of view, in a land auction process conducted on the 14th, go to the auction site housing prices did not perform very positive. On the contrary in the auction hall of Beijing Land Bureau, has attracted a large number of spectators companies.

According to reporters at the scene learned Shahe Town, Changping District, land only attracted to the financial record, North Branch Construction, the first open Vanke Golden Commonwealth and other three companies involved in the auction. And after only six bidders, the plot will be built in North Branch competing with 2.33 billion yuan total price, the premium rate was 5.9%, calculated as the floor price of 28,200 yuan / square meter.

While the other parcels of land, 21 of Shunyi New Town neighborhood block had attracted financial record, Luneng, Mao source, housing prices Heng three other bidders, after 26 rounds of bidding, the final Luneng to 2.93 billion yuan total price of the transaction, the premium rate 13.57%. It is understood that the land contains 17,400 square meters of land endowment, according to the Central Plains real estate statistics, calculate the floor price of the parcels of land for 35,400 yuan / square meter. The total price to sell two plots did not reach a reasonable price cap.

The actual land price is still high

Frequently with the first half of this year nearly 50% premium compared to the current round of land premium rate has been reduced to a great extent. Centaline chief analyst Zhang Dawei said: premium rate reduction is mainly due to the reserve price is too high. His analysis, said: "From two to the transaction price, the current land prices still high, but this was mainly due to the high supply of land scarcity."

Previously, industry insiders have interpreted that these high prices to make up for the downturn in the stock market or the land market since May, driven by investment in housing prices; while the land market to heat conduction property, but also to raise the expectations of buyers. However, from July 14 auction of view, there has been no large housing prices scraping the unrest. According to an on-site sources of housing prices, due to the high starting price of the two parcels, the ability to fund housing prices made certain requirements, so wait and see housing prices much more than participate in the auction business. In this regard, Zhang Dawei believes that in the future Beijing land market is expected to appear divided. Premium location plots will still be expected to sell at high prices, but some non-quality land, there will be significant cooling phenomenon.

In the first half of 2013, the city's land turnover of 649 million yuan, and although the 2014 Beijing land market have 70 days no land, but in the first five months of hot, the cumulative turnover reached 111.5 billion yuan. Residential land in which class of 75.35 billion yuan turnover, premium rate 37.67%; commercial service financial land turnover 15.95 billion yuan, premium rate 56.56%; Comprehensive Land 18.6 billion yuan, premium rate 48.72%.

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