China land sales show property market stabilising: report
Beijing, Zhengzhou, Shenzhen and Hangzhou have recorded premiums in land auctions this year
CHINA’S property market is showing signs of stabilising, with land plots in key cities sold at high premiums in recent weeks, according to a report in the Economic Information Daily.
Beijing, Zhengzhou, Shenzhen and Hangzhou have recorded premiums in land auctions this year, thanks to supportive policies and improving market confidence, the newspaper said on Thursday (Feb 13). That contrasts with earlier auctions that closed at low prices with little interest from developers.
A residential plot in Zhengzhou, Henan province saw an 87.5 per cent premium after 255 rounds of bids, the highest since 2021, according to the report.
Transactions at 35 major cities totalled 234,600 square metres (2.5 million square feet) by floor area during the Chinese New Year, with first-tier cities seeing a 134 per cent gain from the holiday period last year, the newspaper said, citing China Real Estate Information Corporation figures.
Policymakers are expected to continue measures to support the market, including optimising land supply and boosting buyer interest, said the report, citing Yan Yuejin, vice-president of Shanghai E-house’s research arm.
Chinese developers are still struggling with a debt crisis. Authorities are working on a proposal to help China Vanke plug a funding gap of about 50 billion yuan (S$9.2 billion) this year, sources familiar with the matter said this week, highlighting the government’s support for the distressed developer.
A separate Shanghai Securities News report showed that major cities including Beijing, Shanghai and Shenzhen are seeing land sales heat up this year. Transaction value among 300 cities rose 8 per cent in January compared with last year, while the average floor price jumped 33 per cent, the report said, citing data from China Index Academy. BLOOMBERG
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