On the afternoon of April 29, the first batch of 8 homesteads for centralized land supply in Shenzhen in 2022 entered the market for bidding. The 8 parcels are located in Bao’an, Longhua, Longgang, Guangming, Pingshan and Shenzhen Shantou cooperation zones, with a total starting price of 16.8 billion yuan.
From the final land auction results, Shenzhen became one of the first cities with the highest heat of centralized land supply in 2022. All 8 plots sold reached the maximum price, and 5 plots entered the lottery link, with a total charge of 19.33 billion yuan and an overall premium rate of about 15%.
State owned enterprises and central enterprises are still the protagonists of this local auction, and finally take all the plots in this round, and most of them are local state-owned enterprises in Shenzhen or central enterprises that have been deeply involved in the Shenzhen market for many years.
In this land supply, the bidding process of Bao’an Xin’an plot is the most tortuous and anxious. The plot area is large and the most expensive. The land auction takes up to two hours. China Resources and Vanke + talent housing consortium once competed fiercely, and was finally won by Vanke + talent housing Consortium at the price of 7.051 billion yuan + 26000 square meters of self-supporting rental housing area, with a premium rate of 14.99% and a transaction floor price of 32700 / square meters.
According to the plan, the future residential sales price limit of the plot is 87500 / m2, which is about 2000 yuan / m2 higher than that of the plot in the same location last year.
A person familiar with the investment and expansion of real estate enterprises in Shenzhen market told the interface news that the two plots with the highest profits in this round of local auction are Bao’an Xin’an and Longhua Minzhi plots, which are located in Jiangang mountain, a traditional luxury residential area.
Bao’an Xin’an plot is recognized by the market as the best parcel of land for this transfer. It is specifically located next to Xicheng south district and near the experimental school of Bao’an middle school group. There are supporting resources such as Shanghe primary school, Tianjiao primary school and Zhenhua school around it. There are residential projects in the area, such as Yuexiu and Yuefu (with an average price of 100000 / Ping), Vanke metropolis Four Seasons Garden (with an average price of 91000 / Ping), jiangangshan No. 1 Garden (with an average price of 90000 / Ping), Xiyue Huafu (with an average price of 88000 / Ping).
The above investment and expansion people said that one problem of jiangangshan plot was that it was positioned at a high end in the early years. After positioning the luxury residential area, there was no other investment for a long time. There were many favorable policies and planning supporting facilities in other luxury residential areas in Shenzhen, overseas Chinese town and Xiangmi lake. However, there was only positioning in jiangangshan area, and there was no other. The subway is only two kilometers away. The public transportation is relatively poor. The nearby Expressway causes relatively loud noise and life is uncomfortable. The advantage is that it is very close to Futian, Qianhai and Houhai, and the surrounding greening is good.
Historically, when there is a land transfer in Jiangang mountain, real estate enterprises will actively participate in the auction, and Bao’an Xin’an street is also the second parcel won by Vanke here.
However, in recent years, the decontamination of the market entry projects of the plot in this region is not ideal. For real estate enterprises, it is difficult to operate the jiangangshan plot after it enters the market.
The most popular plot in this round is Longhua private plot, which was won by Shenye holding and Longhua talent housing consortium. At the scene, eight real estate enterprises entered the lottery link, with a premium rate of 15%, the transaction floor price of 27800 / m2, and the future residential sales limit of 72200 / m2, an increase of about 2400 yuan / m2 compared with the limit price of 69800 / m2 of surrounding plots last year.
Although the plot of Bao’an Xin’an was missed, China Resources land was still the winner of this round of land auction. It won two homesteads of Guangming at a cost of 4.131 billion yuan.
Guangming Yutang plot won with 1.904 billion yuan. The plot has attracted 6 bidders from China Resources, China shipping, poly, China Merchants, China Development and Lianfa. The sales price limit is 47200 yuan / m2, which is about 3800 yuan / m2 higher than the price limit of plots in the same location last year.
According to Kerui’s data statistics, as of April 19 this year, among the eight plots, Guangming Yutang street is located in the Gongming sector with the most common online residential signs, a total of 1145 sets. The main project is Shenzhen railway Ruicheng, with an average price of about 50500 yuan / square meter.
In addition, China Resources land also won the bright Phoenix plot with a ceiling price of 2.227 billion yuan. The initial listing price of the plot is 1.937 billion yuan, and the future housing sales limit is 48900 yuan / square meter. Compared with the limit price of plots in the same location last year, the price increased by about 4500 yuan / m2, which is the plot with the highest increase in the sales limit price among the plots sold in this round.
Li Yujia, chief researcher of Guangdong housing policy research center, believes that the dominance of central enterprises and state-owned enterprises essentially reflects two problems. One is that the development of Shenzhen is relatively difficult, the land price is also relatively high, there are matching construction requirements, and the comprehensive development ability of developers is relatively high, so state-owned enterprises and central enterprises are dominant. In addition, it also reflects that private enterprises in Shenzhen are still in the dilemma of capital chain risk.
A general manager of investment and development of a central enterprise told the interface news that after experiencing the industry risks last year, the real estate enterprises are more cautious in market expansion, and the markets that are not sure or familiar enough will not enter casually.
For the general increase in the current round of land supply price limit in Shenzhen, Li Yujia said that the price limit of plots has increased by about 5% to 10% compared with last year, giving developers a certain profit space. In addition, the number of plots sold is relatively small, and the overall inventory of new houses in Shenzhen and the decontamination cycle are at a relatively low level in hot cities. The two waves of epidemic from the beginning of the year to the present also squeeze a lot of demand. Developers are still more confident in the new housing market in Shenzhen.
The Shenzhen market has indeed warmed up since March. In March, the total number of online signatures of xinfang.com reached 2859, up 45.94% month on month and down 46.11% year-on-year.
According to the statistics of leyoujia Research Center, the mortgage interest rate of the first house in Shenzhen is generally 4.9%, and that of the second house is 5.2%. Compared with March, it decreased by 15-30bp At present, the speed of lending is accelerated, and mainstream banks can generally lend for about one month.
The recovery of market transactions and favorable policies have also become the reasons for the recovery of Shenzhen local auction.
Insiders told the interface news that in the short term, property buyers in Shenzhen market are not very active, but the adjustment since last year is a problem caused by the shortage of market funds. Developers’ understanding of market fundamentals has not changed, especially in first tier cities such as Shenzhen and strong second tier cities, both developers and property buyers have better expectations.
The shortage of homestead in Shenzhen is another reason why developers are always willing to actively take land.
It can be seen from the documents on the centralized transfer of residential land in Guangming District in 2022 that some plots of land planned for land supply in the second and third batches of Guangming district have not completed house demolition.
In early January this year, Shenzhen issued the “14th five year plan” for housing development. The plan clearly stated that during the “14th five year plan” period, Shenzhen will supply no less than 15 square kilometers of residential land, build and raise 890000 sets (rooms) of housing, and supply and distribute 650000 sets (rooms). By increasing supply, stabilize market expectations and meet more housing demand.
On April 12, Shenzhen housing and Urban Rural Development Bureau released the information on the availability of commercial residential houses in the second quarter. 14250 houses are planned to enter the market in the second quarter, and many new houses in all districts enter the market.
A real estate enterprise investment and expansion person told the interface news that there are not many land plots in Shenzhen this time, and the second batch is expected to be seven or eight. The government also needs to strengthen land supply.
