Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • Google+
  • LinkedIn
  • RSS
  • Twitter
  • Capital Markets
  • Events
    • Mingtiandi Logistics Forum 2020
    • Sponsor the Mingtiandi Logistics Forum
    • 2020 Event Calendar
    • More Events
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Flexible Office
  • Advertise

Vanke Beats 17 Rivals to Pay Record Price for Hangzhou Land – Then Backs Out

2016/06/02 by Michael Cole Leave a Comment

Vanke Wang Shi

Vanke’s Wang Shi only wants his bids to go up to “here”

A joint effort by China Vanke, the country’s largest developer and Cinda Real Estate, a developer belonging to one of the country’s biggest asset managers, beat out 17 other bidders last week to offer RMB 12.3 billion ($1.87 billion) for a plot of land being auctioned in Hangzhou.

The eye-popping price for the land, which could yield more than 570,000 square metres of built area, was the largest amount paid for any site in China so far this year, and reflects the stunning rebound in Hangzhou’s housing market, which was once among the most troubled in the country.

Even more surprising, however, was when Vanke withdrew from the joint venture almost immediately after the winning bid was announced, according to reports in the local press.

Vanke Crashes Through Its Own Ceiling

Eiffel Tower Hangzhou

Just two years ago, Hangzhou was the centre for China’s real estate slide

Immediately after being crowned China’s newest land king, the title given to buyers of China’s most outrageously priced plots, Vanke apparently backed out of the binding bid in the public auction. Company insiders who spoke with the local press indicated that the price of the land, which was the first time that a parcel sold for over RMB 10 billion in the capital of Zhejiang province, exceeded the internal bid ceiling that Vanke had set before the auction began.

Bids were submitted in writing, and the company gave no explanation for its withdrawal. When the auction documents were filed with city authorities, only Cinda’s name appeared as the buyer, and Vanke officials are said to have asked staff members to delete any mention of the land acquisition from their WeChat accounts.

During the bidding process the price for the mixed-use site, which is located on two subway lines in Hangzhou’s Binjiang district, climbed by 95 percent over the auction starting price of RMB 6.29 billion.

Cinda Expecting Big Things in Hangzhou

Cinda, which is now said to have partnered with local Zhejiang developer Hangzhou Bijiang Real Estate on the project, is paying RMB 21,576 per square metre of built space for the land, and some experts estimate that, in order to turn a profit, the joint venture will need to sell apartments in the project for RMB 65,000 per square metre.

During 2015, according to public records, only two apartments in Hangzhou sold for more than RMB 60,000 per square metre, with the most expensive selling for RMB 69,525 per square metre.

From January through the end of March 2014, Hangzhou saw housing prices drop 11.3 percent and sales volumes plummet by 37.8 percent, according to official government statistics. Just two years later, however, the city is back in full swing. Hangzhou residential home prices jumped 3 percent in May compared to April, the 13th consecutive month of price gains in the city.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Related Posts

  • Kaisa Project Frozen in Hangzhou – More Cities Could FollowKaisa Project Frozen in Hangzhou – More Cities Could Follow
  • Land Goes Unsold as Developers Back Away from New ProjectsLand Goes Unsold as Developers Back Away from New Projects
  • Cinda Pays 303% Over Opening Price to Buy Shanghai Land at AuctionCinda Pays 303% Over Opening Price to Buy Shanghai Land at Auction
  • Shenzhen Govt Firm Teams with Road King to Buy $406M Hong Kong SiteShenzhen Govt Firm Teams with Road King to Buy $406M Hong Kong Site

Filed Under: Projects Tagged With: China Vanke, Cinda Real Estate, crebrief, Hangzhou, land auction

Branded Videos

{"Bottom bar":{"textstyle":"static","textpositionstatic":"bottom","textautohide":true,"textpositionmarginstatic":0,"textpositiondynamic":"bottomleft","textpositionmarginleft":24,"textpositionmarginright":24,"textpositionmargintop":24,"textpositionmarginbottom":24,"texteffect":"slide","texteffecteasing":"easeOutCubic","texteffectduration":600,"texteffectslidedirection":"left","texteffectslidedistance":30,"texteffectdelay":500,"texteffectseparate":false,"texteffect1":"slide","texteffectslidedirection1":"right","texteffectslidedistance1":120,"texteffecteasing1":"easeOutCubic","texteffectduration1":600,"texteffectdelay1":1000,"texteffect2":"slide","texteffectslidedirection2":"right","texteffectslidedistance2":120,"texteffecteasing2":"easeOutCubic","texteffectduration2":600,"texteffectdelay2":1500,"textcss":"display:block; padding:12px; text-align:left;","textbgcss":"display:block; position:absolute; top:0px; left:0px; width:100%; height:100%; background-color:#333333; opacity:0.6; filter:alpha(opacity=60);","titlecss":"display:block; position:relative; font:bold 14px \"Lucida Sans Unicode\",\"Lucida Grande\",sans-serif,Arial; color:#fff;","descriptioncss":"display:block; position:relative; font:12px \"Lucida Sans Unicode\",\"Lucida Grande\",sans-serif,Arial; color:#fff; margin-top:8px;","buttoncss":"display:block; position:relative; margin-top:8px;","texteffectresponsive":true,"texteffectresponsivesize":640,"titlecssresponsive":"font-size:12px;","descriptioncssresponsive":"font-size:12px;","buttoncssresponsive":"","addgooglefonts":false,"googlefonts":"","textleftrightpercentforstatic":40}}
  • Seizing opportunity in a complex debt market
  • Seizing opportunity in a complex debt market

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Mingtiandi Delivered!

Yardi Optimized 03

Latest Stories

CBRE Capital Advisors Hires Gretchen Yuan as Executive Director in Hong Kong

Pansy Ho Shun Tak

Shun Tak JV Paying RMB 4.7B to Buy 50% of Mega-Project on Shanghai’s Suzhou Creek

JLL Welcomes Back Nelson Wong as Head of Research for Greater China

Asia Real Estate People in the News 2019-12-09

Sponsored Features

Secondary Transactions Gain Traction in APAC Real Estate Funds Sponsored Feature

$1.6B Iconsiam Breathes New Life into Bangkok Waterfront Sponsored Feature

tim graham JLL

Duo Tower Deal in Singapore Part of Growing Trend Toward JV Acquisitions in APAC Sponsored Feature

Andrew Yao

Building A Value-Add Strategy for Shanghai Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • Google+
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • Events
    • Mingtiandi Logistics Forum 2020
    • Sponsor the Mingtiandi Logistics Forum
    • 2020 Event Calendar
    • More Events
  • People
  • Logistics
  • Asia Outbound
  • Retail
  • Design & Construction
  • Research & Policy
  • Flexible Office
  • Advertise

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Newsletter Subscription
  • Weekly Newsletter Archive
  • Daily Digest Archive
  • Terms of Use
  • Privacy
  • Advertise
  • Work for Mingtiandi