Shenzhen pockets $5 billion in second land auction of the year

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(Yicai Global) Aug 5 — Shenzhen raised 34 billion yuan ($5 billion) in its second land use rights auction this year, which ended yesterday with half of the plots bid. auctioned reaching the bidding ceiling.

Sixteen residential land plots covering 33.2 hectares and a planned land area of ​​1.8 million square meters were auctioned, of which 14 were successfully sold, Yicai Global learned from the city’s land documents. . More than 20 developers, including China Resources Holdings, China Overseas Land & Investment and Huafa Group, participated.

China Resources paid 11.9 billion CNY (1.7 billion USD) on four plots, or 685,000 square meters of planned floor space. The Shenzhen-based developer, which had the fifth-highest contracted revenue in the first half, paid 39.2 billion yuan in land-use rights during the period, the second-highest amount among Chinese developers, according to data from the China Index Academy.

“This round of land auctions has been better than expected, with heated bidding for some plots, mainly due to their good locations with strong supporting infrastructure,” said Li Yujia, chief researcher at the Planning Institute. and urban and rural design of Guangdong. There were five less. auctioned plots than in last year’s second land auction, indicating that the local government is keen to avoid failed auctions.

A bidding war has broken out for land on Xin’an Street in Shenzhen’s Bao’an district, which is near two subway stations, Bao’an Stadium and some major shopping malls. Yuexiu Property outbid nine other developers to secure the land.

Another plot of land in Qianhai, Nanshan District, which was eventually awarded to China Merchants Property Development, was in high demand. A luxury housing project near the recently sold plot on the first day of sales. Some 1,728 potential buyers came to view the 743 Royalpeak villas, priced between CNY 11 million (USD 1.6 million) and CNY 20.5 million. Similar projects also sold out quickly.

The renewed enthusiasm for land among developers could also be linked to an increase in sales of new apartments. Sales of new apartments in the city jumped 10% in July from June to 3,317 units and jumped 60.3% in June from May to 3,008 units, while sales of second-hand apartments froze, according to data from real estate agent Leyoujia.

Editors: Shi Yi, Kim Taylor

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