On April 20, with the final determination of the winners of five lottery plots, the first batch of centralized land auction in Ningbo in 2022 officially ended, and all 33 plots were sold, with a total amount of 26.522 billion yuan.
Looking back on the whole land auction, among the 33 plots launched in Ningbo this time, there are 20 commercial residential lands, 9 rental housing lands and 4 resettlement housing plots, with a total transfer area of about 1138400 square meters and a total construction area of about 2.555 million square meters. Among them, plot hs08-03-02 in Ximen section of Haishu District, plot hs04-02-19 in Xicheng section of Haishu District, plot cx07-03-04d-1 in Haishu District, plot cc09-06-01a, 01B and 02 in Jiangbei District are “back to the furnace”. In this transfer announcement, the starting floor price has decreased significantly, and the limit price of new houses has increased at the same time.
From the perspective of transaction price, except that 5 plots reached the ceiling premium rate of 15% and were transferred to the offline lottery link, only 3 plots were sold at a premium, and the remaining 25 were sold at the base price. The overall premium rate of this centralized land supply decreased slightly to 5.9% compared with the third round of 2021. The main reason is that the confidence of Ningbo commercial housing market is still under pressure, and the de industrialization cycle of some sectors has been significantly prolonged. Although there is some good news in recent policies, it will take some time to transmit it to the market and enterprise levels, “Bai Wenxi, chief economist of IPG China, told the Securities Daily
From the perspective of land acquisition real estate enterprises, it is still dominated by state-owned enterprises. Beilun state-owned assets gained 6 parcels of land, ranking first in the list of parcels. Poly Real Estate won 3 parcels of land with 6.3 billion yuan, ranking first in the list of amounts. Jianfa, Vanke, jiangshanwanli, Youngor Group Co.Ltd(600177) these well-known real estate enterprises have also made achievements.
It is worth noting that this local auction, like the current situation of Ningbo property market, presents a phenomenon of hot and cold polarization. For high-quality plots, developers’ land acquisition sentiment is still very high. Among them, the popular plots in Yinzhou District have attracted more than 10 real estate enterprises such as Greentown, China Resources and Vanke; Some plots far from the core area are mostly supported by local urban investment, and local state-owned enterprises such as Beilun state-owned assets, Yinzhou state-owned assets, Ningbo Development Investment and Ningbo economic development have become the main force of land acquisition.
Bai Wenxi told reporters: “at present, when market confidence is damaged, industry liquidity is generally lacking, and local governments cannot get rid of their dependence on land finance, it will naturally become a long-term trend for state-owned enterprises to take land and play a leading role in the land market with ‘central Guoping’ (Central Enterprises, state-owned enterprises and local platform companies).”
For the performance of the first round of concentrated local photography in Ningbo in 2022, Bai Wenxi said: “although the first local auction in Ningbo in 2022 was all concluded, the enthusiasm of enterprises to enter the market was obviously insufficient, resulting in insufficient market competition, low premium rate, and the main entrants were central enterprises, state-owned enterprises and local platform companies. Even Youngor Group Co.Ltd(600177) also belonged to local enterprises. The characteristics of ‘support’ of relevant enterprises organized by the government in this local auction are very obvious.”
An insider who asked not to be named said in an interview with the reporter of Securities Daily: “under the ‘double limit’, it is not a good time for high-quality land to enter the market, so it is reasonable that there are few highlights in this local auction. To restore the once passionate and climax local auction ‘feast’, we also need the support of market confidence and heat.”
“Judging from the local auction, it will take some time for the real estate market in Ningbo to recover, and the real estate enterprises are still cautious in taking land. However, with the relaxation of the policy environment of the real estate market, the benefits of reducing reserve requirements and interest rates continue to increase, the profit space of taking land increases, and some developers have no grain in their hands. It is expected that the second batch will usher in the window period of taking land.” Said the above industry insiders.
