At 3 p.m. on April 29, the first centralized land supply in Shenzhen in 2022 was held as scheduled. After four and a half hours of fierce battle, all eight plots were successfully transferred, with a total amount of 19.33 billion yuan.
From the perspective of the transfer process, the current round of centralized land supply in Shenzhen is very popular. All 8 plots are sold at the maximum limited land price, of which 5 have entered the lottery link.
The local auction in Shenzhen attracted the participation of central and state-owned enterprises such as China Resources, China Merchants, China shipping, poly, HUAFA and Yuexiu. There are only three other real estate enterprises, including Vanke, Jindi and excellence. Finally, China Resources obtained two plots in Guangming District, and Vanke + Anju group, Shenye + Longhua Anju, Tianjian, Pingshan urban investment, Shenshan urban investment and Longgang Anju all gained.
The residential land transferred in Shenzhen this time is located in Bao’an, Longhua, Longgang, Guangming, Pingshan and Shenzhen Shantou Special Cooperation Zone. Among them, Jiangang mountain plot in Bao’an is the plot with the highest land price and sales price limit among all plots, with a starting price of 6.13 billion yuan, a maximum land price limit of 7.05 billion yuan, a sales price limit of 87494 yuan / m2, a construction area of 215600 square meters, including China Resources, China shipping, poly, China Merchants, HUAFA Vanke + Shenzhen Anju group participated in the bidding of the plot. Finally, Vanke + Shenzhen Anju group won the land with 7.051 billion. It is reported that the plot is located in the luxury residential area of Jiangang mountain, close to phase 2 of China Merchants Xicheng and zone B of Shanghai New World Co.Ltd(600628) yumingbieyuan.
Longhua private plot is the most sought after, attracting 10 real estate enterprises to participate in the auction. After the auction of the plot began, it quickly entered the lottery link, and finally won by Shenye + Shenzhen Anju group. It is reported that the plot is located at the intersection of Shangtang road and Longtang No. 2 Road, between the Tang station and Hongshan station on Metro Line 4. There is a strong living atmosphere nearby, supported by Tianhong square, Longhua experimental school, etc.
Bright Phoenix plot is also popular, with a total of 8 real estate enterprises participating in the bidding. It is worth mentioning that, compared with the adjacent plots previously sold, almost all the plots listed in Shenzhen have increased the sales price limit, while the bright Phoenix plot is the plot with the largest increase in the sales price limit. The sales price limit for this transfer is 48900 yuan / m2, 4500 yuan / m2 higher than the plots sold only 500 meters apart in 2021.
Although the local auction in Shenzhen has left a certain profit space for real estate enterprises by raising the sales price limit, the local auction rules in Shenzhen have not been significantly relaxed. All eight plots need to build indemnificatory rental housing. The same enterprise and its holding companies are still not allowed to participate in the bidding of the same parcel. The Shenzhen Municipal Bureau of planning and natural resources still needs to review the source of land purchase funds of real estate enterprises.
On the one hand, the sales price limit of the plot has increased by 5% – 10% compared with 2021, and the profit of developers has increased; On the other hand, the number of plots launched this time is relatively small because of the lack of enthusiasm of developers to obtain land; In addition, in hot cities, the digestion cycle of new house inventory in Shenzhen is relatively short, coupled with the warm wind of recent policies, which has increased the confidence of developers in the future market, while Shenzhen itself has a high sensitivity to policies, so the performance of the land market is also good.
He Qianru, director of Meilian property National Research Center, believes that although Shenzhen is still dominated by the “national team”, it can be seen from the number of real estate enterprises participating in the auction and the number of auctions of each plot that the confidence of real estate enterprises in the Shenzhen market has been restored. The successful transfer of the homestead is expected to inject stronger upward momentum into the recovering Shenzhen market.
Luo Yu, general manager of Heyi urban renewal group, told China first finance and economics that the local auction in Shenzhen has brought revaluation pricing benchmarking to the recently depressed urban renewal field. In the future, the performance of the local auction market may bring spillover effects to urban renewal and land preparation.
