Editor’s note: This article provides a review of local media coverage of recent land purchases by developers in mainland China, along with related research and statistics, with the goal of providing observers and analysts with insights into changes in developer pipelines and land sale prices in the world’s largest housing market.
Hong Kong-listed developer China Overseas Property Holdings, a subsidiary of state-owned China Overseas Land and Investment, won a pair of residential parcels at auction in Guangzhou this Monday for a combined RMB 3.4 billion. The COLI affiliate bid up to the government price cap of RMB 1.39 billion for its first win of the day taking a plot near the 2010 Asian Games venue in Panyu District which is approved for 86,400 square metres of housing.
That purchase, which works out to an average floor price of RMB 16,095 per square metre, was made at the same auction where COPH pocketed another residential site in Liwan District. The company paid an average price per square metre of floor area of RMB 34,700 for that 56,700 square metre project near the Pearl River, handing over nearly RMB 2 billion for the site on the city’s main avenue. Read more>>
Gemdale Corporation on April 2nd agreed to pay RMB 1.76 billion for a residential site in Hangzhou’s Gongshu district. The state-backed developer paid the equivalent of RMB 22,277 per square metre of floor area for the site, which is approved for construction of up to 79,000 square metres of housing.
The Shanghai-listed company edged out its competitors in the government auction by agreeing to retain at least 21 percent of the housing on a build-to-rent basis, as the authorities continue to encourage the development of a rental housing market.
At the same auction, Gemdale won a commercial plot in Shangcheng district with a bid of RMB 2.28 billion, which will give the Shenzhen-based firm the right to develop 141,400 square metres of space at a price of RMB 16,089 per square metre. Read more>>
The Nanjing city government brought in a cumulative RMB 12.1 billion at a land sale on March 29th in the capital of Jiangsu province, as developers bought up all seven sites made available at a land auction.
New Hope Real Estate, a unit of dairy processor New Hope Group, contributed nearly half of the city’s total revenues from the sale, agreeing to pay RMB 5.32 billion for a residential plot in Qixia District at a oost of RMB 22,628 per square metre of floor area.
At the same sale, Shanghai-headquartered Shimao Property agreed to pay RMB 2.8 billion for a mixed-use site in Yuhuatai District. The top 10 developer will be paying the equivalent of RMB 16,620 per square metre of floor area for the project, which has 67,389 square metres of above ground space underpinned by 7,495 square metres of underground floor area of underground space. The project includes both commercial and residential elements with planning documents specifying development of a kindergarten. Read more>>
New Hope Group on March 29th won the government tender for a residential plot in Hangzhou’s Yuhang district, when it agreed to pay RMB 3.46 billion for the site in the Jiuquiao high tech zone.
The dairy supplier spinoff will be paying the equivalent of RMB 21,008 per square metre for the site in the capital of Zhejiang province, with the local government having already approved development of a 164,700 square metre high tech hub, with the stated stipulation that the project be completed by the end of 2021. Read more>>
China Vanke may be leveraging China’s emphasis on redeveloping shantytowns to increase its landbank in its home province, after the top three developer bought sealed two new projects late last month.
During the last week in March, the Vanke secured a project on the outskirts of the Guangdong province city of Foshan city, adding a 400,020 square metre (600 mu) site into its land bank reserve after its redevelopment plan for the village area won approval from the current occupants of the land.
On the last day of the month the Shenzhen-based developer also won a rural development tender in its home city’s Bao’an District, beating China Merchants Property and Hongfa Group to win the right to develop 15,500 square metres of commercial space, after agreeing to pay compensation including relocation fees, rent and construction fees to the current occupants of the location. Read more>>
Sunshine City Group on April 2nd won a government tender for a 24,900 square metre mixed-use site in central Hangzhou, after agreeing to pay the auction cap price of RMB 1.57 billion for the land in Xiacheng district.
With more than one bidder having offered the maximum price of RMB 26,263 per square metre of finished accommodation for the project, the Shenzhen-listed developer won out over its competitors, after 36 rounds of bidding, by offering to retain 22 percent of the finished space on a build to rent basis. The project includes both residential and commercial space. Read more>>
Hong Kong-listed developer Midea Real Estate on Monday set a record in the Guangdong provincial city of Huizhou by agreeing at a government land auction to pay RMB 3,941 per square metre of floor area for a mixed commercial and residential site.
The property arm of China’s biggest home home appliance maker Midea will be paying more than RMB 471 million for its first site in the historic city in southern China Read more>>