Events
On March 17, the first batch of centralized land supply was opened in Hefei in 2022, with a total of 19 pieces of land sold. Except for 2 pieces of land for indemnificatory rental housing, 17 pieces of land were sold at a premium, with a total price of 14.978 billion yuan.
Main points
Adjust the qualification rules and increase the number of competitive quality enterprises. In this round of local auction, Hefei adopts the bidding method of "the highest price + bidding for high-quality housing construction scheme + lottery". In addition, according to the content and scoring standard of high-quality commercial housing construction in Hefei, The scoring standard for individual projects is revised from "the qualification level of the development enterprise is 5 points for class I qualification of real estate development" to "the qualification level of the development enterprise is 5 points for class I qualification of real estate development, and 4 points for class II qualification and below". The difference between the grade II qualified real estate enterprises and the grade I qualified real estate enterprises is only 1 point, which helps to increase the number of high-quality real estate enterprises participating in the competition.
Enterprises in high-quality plots have high enthusiasm for participation, and there are obvious signs of recovery. Among the 17 residential plots, 15 reached the top and entered the stage of "competitive quality", with a total transfer area of 765200 square meters and a total transaction amount of 14.978 billion yuan; The premium rate of 16 plots exceeds 10%, up to 14.94%. Poly, Greentown, Longhu and other brand real estate enterprises actively participated in the auction, of which Longhu won a plot in Shushan district for 984 million yuan, with a transaction unit price of 9.05 million yuan / mu and a premium rate of 14.56%.
The participation of non hot plots is low, and real estate enterprises generally seek stability. On March 16, Hefei land market network released the announcement of auction and re listing. The auction and re listing of 15 parcels of land originally scheduled to be sold on March 17 is tentatively scheduled to be sold on March 25. Some plots for auction and re listing are generally located on the side and the surrounding supporting facilities are not mature. After entering the market, the market competition pressure is large, indicating that the existing real estate enterprises generally seek stability. For plots with large capital investment and slow collection speed, the real estate enterprises do not have high enthusiasm to participate in the auction.
Investment advice
Recently, many places have introduced new policies to stabilize market expectations. After Hefei adjusted the local auction rules, the market has warmed up, and enterprises' enthusiasm for participating in high-quality plots has rebounded significantly. With the further deepening of urban policy reform, it is not ruled out that more cities will introduce relevant policies. In the short term, the credit environment has improved, the Matthew effect on capital is prominent, and enterprises with low financing cost and land acquisition advantage may benefit; In the medium and long term, after the in-depth adjustment of the industry, brand real estate enterprises with the advantages of financing and land acquisition will have obvious advantages in the future competition. Related targets: (1) leading real estate enterprises with low financing cost and sustainable land acquisition in first and second tier cities, such as Poly Developments And Holdings Group Co.Ltd(600048) ( Poly Developments And Holdings Group Co.Ltd(600048) . SH), Greentown China (3900. HK), Longhu group (0960. HK), etc; (2) Real estate enterprises that are less affected by the "two concentration" land policy and can obtain land through diversified ways, such as Seazen Holdings Co.Ltd(601155) ( Seazen Holdings Co.Ltd(601155) . SH), Baolong real estate (1238. HK), etc; (3) The construction of indemnificatory rental housing has gradually opened the demand for agent construction, and deeply cultivated the green city management holding (9979. HK) built by the government for many years.
Risk tips
Real estate policy regulation exceeded expectations; The sales of commercial houses were lower than expected.
