**: China ** newspaper
Author: Cheng Zhu Dong Tian.
Towards the end of the year, hot cities such as Chengdu, Suzhou, and Beijing intensively bid for land and put up land, and the overall differentiation of transactions was obvious. Recently, a number of listed companies have announced new land use rights, and some real estate companies have taken the geothermal heat to recover.
Intensive land transfer
On November 30, Chengdu ushered in the second land auction after the cancellation of the price limit, and among the 7 auctioned lands, 43 were in the Luhu section of Tianfu New Area7 acres of residential and commercial land has attracted many enterprises to compete for it by virtue of its high-quality regional conditions and land attributes. 3 plots in Shuangliu and 1 plot in Qingbaijiang were all traded by local state-owned enterprises at the reserve price, and two plots in Wenjiang were terminated for some reason.
On November 29, eight batches of centralized land supply in Suzhou were transferred, and 6 residential lands were located in Wuzhong District (3 cases), industrial parks (2 cases), and Xiangcheng District (1 case), with a total transfer area of about 28620,000 square meters, with a total construction area of 40660,000 square meters, and finally 6 residential land transactions were sold at a premium of 1 and 5 at a reserve price, raising about 7.5 billion yuan. This is the first land auction after the cancellation of the land price limit in Suzhou, and the results of the land auction are clearly differentiated, from the perspective of land acquisition real estate enterprises, most of them are still local state-owned enterprises, and most of them continue the model of joint land acquisition.
On November 27, the Beijing Municipal Planning and Self-Commission** released the "List of Proposed Commercial Residential Land in the Fourth Round of 2023", which will be held from November 28, 2023 to February 28, 2024**. Involving 13 parcels of land, with a construction area of about 1.26 million square meters, 9 plots will be sold in December, with a total starting price of 214600 million yuan, with a total planned construction area of about 1.05 million square meters. Among them, there are 3 cases in Daxing, and 1 case in Changping, Fangshan, Mentougou, Shunyi, Fengtai and Shijingshan. From the point of view of the location of the plot, it is necessary to further implement the needs of the overall planning of Beijing City to be relieved and undertaken in an orderly manner. At the same time, it actively guides the integration of industry and city and promotes the balance between jobs and housing. It is expected that the plot of Huangcun Town in Daxing District and the Dahongmen plot in Fengtai District will attract the attention of real estate companies by virtue of the strength of the sector in which they are located. The plots of Shunyi New Town, Changping Huilongguan International Information Industry Base and Life Science Park are still mainly focused on groups that just need to be reformed.
According to institutional monitoring data, Guangzhou, Chengdu, Hefei, Jinan, Chongqing, Xiamen, Changsha, Nanjing, Fuzhou, Wuhan, Suzhou, Qingdao, Wuxi, Tianjin, Changchun, Hangzhou, Shenyang, Zhengzhou and other cities have canceled land price restrictions.
Liu Shui, director of enterprise research at the China Index Research Institute, said that the relationship between supply and demand in the real estate market has undergone major changes, and the restrictive measures introduced during the overheating period of the market are gradually withdrawing from the stage, and the cancellation of land price limits will help stabilize housing prices, stabilize expectations, and stabilize the market. Judging from the specific urban land auction situation, some cities have a small number of high-quality land plots in the core area with high popularity, and the rest are traded at multiple reserve prices.
A number of listed companies have added land use rights
Recently, a number of listed companies have announced new land use rights.
On the evening of December 1, BBMG Group announced that Dunshi Real Estate, a wholly-owned subsidiary of Jidong Development Group Co., Ltd., a subsidiary of the company, recently obtained the "Confirmation of the Auction of the Right to Use State-owned Construction Land of Tangshan Public Resources Trading Center", and won the right to use the state-owned construction land of the No. 012 plot of Tang Xianzhuo Zi [2023] at the reserve price through auction, with a total land area of 35,68721 square meters, 71,374 above-ground building area42 square meters, the total transaction price is 44252140,000 yuan, the planned use is second-class residential land. The land was originally an idle land resource owned by the company's subsidiary. At present, Dunshi Real Estate owns 100% of the project.
Black Peony disclosed on the evening of December 1 that the announcement on the wholly-owned subsidiary bidding for the land use right showed that the company's wholly-owned subsidiary, Changzhou Peony Huidu Real Estate, was sold at a total price of 7RMB 7.7 billion bid for the right to use the state-owned construction land of JZX20231005 in Changzhou City, Jiangsu Province, which is located in Xuejia Town, Xinbei District, Changzhou City, Jiangsu Province, east of Jianye Road, south of Jiye Road, west of Linping Road, and north of West Huanghe Road.
According to the announcement of Black Peony, the above-mentioned auction is the company's management in the current real estate market conditions fully consider the risk factors on the basis of investment decisions, but because the real estate industry is greatly affected by relevant policies and has cyclical fluctuations, so the company has the risk that the above projects can not achieve the expected returns, the company will reasonably arrange the project development and construction progress according to market conditions, and actively do a good job in relevant risk prevention and control measures.
Some listed companies cooperate in the development of land plots. Huafa Co., Ltd. announced on the evening of December 1 that Nanjing Huachen, a wholly-owned subsidiary of the company, signed the "Cooperation Agreement on the 2023G55 Plot of Green Expo Park, Jianye District, Nanjing" with Anhui Greentown, Beijing Wenning and Yucheng Group, agreeing to jointly develop the 2023G55 plot of Green Expo Park in Jianye District, Nanjing City, which has been obtained by Anhui Greentown auction. According to the announcement, on October 27, 2023, Anhui Greentown successfully bid for the state-owned construction land use right of the 2023G55 plot of Green Expo Park, Jianye District, Nanjing City with a total price of 6.9 billion yuan, and signed the "Transaction Confirmation of Public Transfer of State-owned Construction Land Use Right" with the Nanjing Municipal Planning and Natural Resources Bureau for the project plot.
According to data from the China Index Research Institute, in the first 11 months, the total amount of land acquired by the top 100 real estate companies was 1,085.5 billion yuan, a year-on-year decrease of 66%, a decrease of 3 from the previous month4 percentage points, narrowing for two consecutive months. From the perspective of layout area, enterprises are keen to acquire land in the Yangtze River Delta, with Shanghai, Xi'an and Hangzhou ranking among the top three.
For the follow-up market, Zhang Kai, head of land market research at the China Index Research Institute, said that among the 300 cities monitored by the country, the annual land transfer income in 2022 will be about 67 trillion yuan, and the annual land transfer income in 2023 may be less than 5 trillion yuan. The first-, second-, third- and fourth-tier cities are significantly differentiated, and the investment of real estate enterprises continues to gather in core advantageous cities. In December 2023, land auctions in various cities will be accelerated**, and high-quality land plots are expected to stimulate enthusiasm for land auctions.