Multiple cities in China have sold land at high premiums
I'm LongbridgeAI, I can summarize articles.In many cities in China, land has been sold at high premiums, reflecting a gradual recovery of confidence in the real estate market. With coordinated policy efforts, the land market is showing signs of recovery. In land auctions in places like Beijing and Zhengzhou, the premium rates have significantly increased, indicating a positive outlook from companies regarding market prospects. Experts point out that the warming of the land market is due to improved demand in the housing market, with a noticeable increase in property purchase volumes in multiple cities, indicating a resurgence in the public's willingness to buy homes
The focus of policy direction in the mainland real estate market is moving towards stabilizing and recovering from the downturn. According to the Economic Reference Daily, accompanied by a series of coordinated policies, the real estate market is showing multiple positive phenomena, with a recovery trend evident in both the residential transaction market and the land market. Market confidence is gradually recovering, moving towards a new stage of steady development.
Since the beginning of this year, there have been increasingly more land parcels that have gone through multiple rounds of bidding, even selling at high premiums. The intense competition is not a coincidence but a reflection of companies' optimistic attitudes towards market prospects, as well as evidence of the gradual recovery of market confidence.
Active Competition, Optimistic Economic Outlook
The report pointed out that on Tuesday (the 11th), Beijing auctioned residential composite land in Chaoyang District, where several real estate companies competed through 103 rounds of bidding, resulting in a transaction at a premium rate of 10.5%. Last Saturday (the 8th), residential land in the Jinshui District of Zhengzhou experienced 255 rounds of bidding over 6 hours, being won at a premium of 87.5%, marking a new high for premium rates since 2021. Similar situations have occurred in land markets in Shenzhen and Hangzhou. Yan Yujin, vice president of the Shanghai E-House Real Estate Research Institute, stated that the high premium opening of the land market this year is the result of a combination of factors such as the scarcity of quality resources, policy support, and improved market expectations.
The warming of the land market is attributed to the gradual improvement in housing market demand. In January, the overall transaction volume in 30 key cities reached 9.27 million square meters, a year-on-year increase of 1%, significantly surpassing the absolute volume of February last year during the Lunar New Year. Yang Kewei, a researcher at the CRIC Research Center, indicated that during the Spring Festival holiday, the property purchase volumes in cities such as Guangzhou, Wuhan, Xi'an, and Jinan all showed significant growth, fully demonstrating the rising willingness of the public to buy homes and the strengthening of consumer confidence