In yet another sign that China’s real estate watchers believe that the latest economic stimulus will pump up housing prices despite policy restrictions, China’s property developers are jumping back into the land market.
After government land auctions had relatively few takers earlier this year, in recent weeks China Vanke Co., Evergrande Real Estate Group, Agile Property Holdings and Central China Real Estate have all bought new sites at land sales.
And on Tuesday, Poly Real Estate, China’s third-largest developer by sales announced that it has purchased land in three cities for a total of 3 billion yuan ($471 million).
According to a report in the Wall Street Journal,
Poly Real Estate’s latest purchases made at public auctions are residential sites in Chongqing, Deyang and Shenyang, the company said in a separate stock exchange filing.
The Guangzhou-based developer said it has bought two plots covering 28 acres in southwestern Chongqing for 1.36 billion yuan and one 46-acre plot in Shenyang for 1.04 billion yuan. It bought six plots in Deyang in southwestern China covering a total of 85 acres for 597.5 million yuan.
So while Premier Wen Jiabao may be stressing the need to keep property sales down, China’s developers clearly have other ideas.
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