China News Service, March 30 (China News Financial Reporter Zuo Yukun) Recently, the popularity of the land auction market in many places has increased significantly. Not only have traditional real estate companies stepped up their efforts to acquire land, but they have also attracted the participation of many new faces.

　　Up to now, the first batch of centralized local auctions in many places have come to an end. In particular, hot cities such as Hangzhou, Chengdu, and Hefei that have relaxed the price limit for land auctions and restored the "highest bidder gets it" have once again seen lively scenes of land acquisition at high premiums.

  Data map: Real estate projects under construction. Photo by China News Service reporter Zhang Bin

The land auction market in many places is getting off to a good start

　　On March 26, Beijing's land auction market once again staged a "lottery battle". A land parcel in Changping District, Beijing, was sold at the top, and another land parcel in Huairou was sold at the lowest price. The final total transaction amount of the two land parcels was Over 5.1 billion yuan.

　　Naturally, the land in Changping District that attracted the most attention was the land parcel in Changping District that attracted 18 real estate companies to sign up. It is the first residential project to be “entered into the market with a plan” in Beijing. In order to ensure the high-quality construction of the project in the future, the land transfer document requires that the The design plan of the project must be selected from the first-prize winning entry in the National “Good House” Design Competition in Beijing.

　　The reasonable upper limit price of the land is 3.0935 billion yuan. The so-called "lottery" means that when the bidding price reaches the reasonable upper limit price of the land, higher bids will no longer be accepted, and the winner will be determined by on-site lottery method.

　　Earlier, in mid-March, Shanghai's first batch of centralized land auctions in 2024 opened. Five listed land parcels attracted more than 20 real estate companies to participate in the auction, and the final total transaction amount was 13.4 billion yuan. Among them, 4 of the 5 land parcels were subject to lotteries, with a premium rate of 9.07%. The overall premium rate hit a new high since the centralized land supply in 2021.

　　Also driven by high-quality land parcels, on January 26, 5 out of 6 land parcels were sold in Hangzhou at a premium, among which the premium rate for the Beiganxi unit parcel reached 31%; on February 27, all 7 parcels of land in Hangzhou were sold at a premium Among the transactions, 6 of them had a premium rate of more than 15%.

　　Scenes of acquiring land at high premiums are common in popular cities. According to data from the Anjuke Research Institute, in February this year, the land market in core first- and second-tier cities heated up, with premium rates rising in some cities. Among them, the average premium rate of Hangzhou soil auctions reached 19.1%, the average premium rate of Beijing soil auctions reached 5.72%, and the highest premium rate of Hefei soil auctions reached 54%.

　　The industry expects that the overall popularity of the land market will rebound this year on the basis of last year, and the market also maintains high expectations for core first- and second-tier cities.

　　"According to data from the Ministry of Natural Resources, the volume of residential land transactions in first- and second-tier cities increased year-on-year in the first two months. The launch of high-quality land plots in some core cities increased, and the pace of land sales accelerated, driving the increase in the area of ​​residential land transactions in core cities, and real estate companies' investment became more focused In core areas and high-quality sectors, the market differentiation of local auctions has further intensified." said Chen Wenjing, market research director of the China Index Research Institute.

  Data map: Real estate projects under construction. Photo by China News Service reporter Zhang Bin

Higher quality requirements after “no price limit”

　　In terms of land acquisition companies, while central and state-owned enterprises continue to be the main force in acquiring land, private real estate companies are also becoming more enthusiastic about acquiring land. According to data from the China Index Research Institute, from January to February this year, more than 10 private real estate companies including Binjiang Group, Fude Real Estate, Xifang Group, Jianhang Real Estate, and Hunan Yunda were shortlisted for the top 100 list in terms of new value.

　　Not only that, many new forces in the industry have also appeared in the local auction market. On March 15, Beijing’s Shunyi New City 23 Airport Phase 6 plot attracted 37 developers to participate in the auction, including a new face that has attracted much attention - Beihaojia Real Estate, whose major shareholder is looking for housing for Beike, Beihao Home is also one of the four business lines in Shell’s “One Body, Three Wings” strategy.

　　According to data from the China Index Research Institute, as of March 26, the land transfer fee for residential land in 300 cities across the country this year was 218 billion yuan, a year-on-year increase of 10.4%. The average price of residential land transactions increased by 23.5% year-on-year, and the premium rate increased to 5.6%. Behind the rising popularity, the continued efforts of policies on both the supply and demand ends can be said to be an important bargaining chip that gives real estate companies confidence in acquiring land.

　　The combination of policies such as the falling cost of home purchase on the demand side and the accelerated implementation of the “white list” have all contributed to the increase in positive market sentiment. In addition, land auction policies in various places are also constantly being optimized and adjusted. Since many places announced the cancellation of the maximum land price at the end of 2023, most of the 22 cities that implement centralized land supply have restored "the highest bidder gets it".

　　Analysts believe that after the price limit is lifted, market prices will be determined by market competition, which may make real estate companies more proactive in improving the quality of residential products to meet consumers' pursuit of high-quality life. This is similar to the recent optimization of the "7090" policy in Shanghai and Shenzhen, which is conducive to providing more matching land resources for diversified housing needs and better promoting the release of housing demand.

　　During the National Two Sessions, Ni Hong, Minister of the Ministry of Housing and Urban-Rural Development, once said that under the new model, real estate companies will strive for high quality, new technology, and good services in the future. "Whoever can seize opportunities, transform and develop, and whoever can build good houses and provide good services for the people will have a market, develop, and have a future."

　　From this point of view, the supply side's focus on increasing the supply of high-quality housing has become an important trend in the market. (over)