The Shanghai land auction market is bustling all year round. Today (31st), the land auction market once again ignited a new highlight: Beike won the last piece of residential land in Shanghai this year, entering first tier cities for the first time, and expanding the popularity of land auctions from the central urban area to the suburbs of Shanghai.
Today, the last batch of residential land transfer transactions for 2024 in Shanghai officially ended, with all 7 plots sold for a total price of 19.225 billion yuan. The only piece of residential land sold today is located in Fengxian New City, with three bidders participating in the bidding. After 17 rounds of bidding, Beihaojia (Shanghai) Real Estate Co., Ltd. won the bid for 697 million yuan, equivalent to a floor price of 22800 yuan/square meter, with a premium rate of 13.9%.
Beihaojia is a subsidiary of Beike and the controlling shareholder of the real estate agency brand Lianjia. This is the first appearance of Beihaojia in Shanghai. The reporter learned from Beihaojia that the initial positioning of this plot of land is mainly for basic needs, and it will be independently operated by Beihaojia throughout the entire process, including land auction, positioning, design, marketing, and other aspects.
Lu Wenxi, an analyst at Shanghai Zhongyuan Real Estate, said that the biggest advantage of Beike's transformation into a developer lies in marketing. The second-hand housing transactions in the region are active, accumulating many customers, and the project itself has a small volume. Flow oriented products are more suitable for the company to test the waters in Shanghai.
Fengxian New City is one of the five new cities in Shanghai with great development potential. To independently operate such an important project in Fengxian New City, it is necessary to explore the implementation of Beihaojia's unique concepts of variable layout, three-dimensional greening, and multiple good services, "said Chen Yan, the regional general manager of Beihaojia in Shanghai. The reporter learned that Beihaojia will focus on conducting business in more than ten cities across the country next year, including Shanghai.
The current national real estate industry is still in a period of adjustment, with central and state-owned enterprises becoming the main force in the land auction battle in Shanghai in the past two years. As a private enterprise, Beike has won land for the first time in a first tier city, reflecting the steady increase in the enthusiasm of private enterprises to acquire land. Yesterday, Hong Kong funded Chen Jia won the Xuhui Longhua plot with a high premium rate of 40%, becoming the second highest residential land transaction floor price in Shanghai this year. In the seventh batch of homestead transactions, foreign-funded Pangu Real Estate won the Qingpu New City plot located in the suburbs of Shanghai. These transaction cases send a signal that being optimistic about Shanghai and investing in Shanghai remains the top choice for financially strong companies.
Industry insiders say that the acquisition of land by private enterprises is an important signal of a warming and improving real estate market. Under the influence of a series of central and local policies, with the marginal improvement of overall market sales, the confidence of private real estate enterprises has been boosted.
From a broader perspective, another trend is emerging, which is that the enthusiasm of enterprises to acquire land has expanded from central urban areas to suburban areas such as new cities.
Since the beginning of this year, the trading rules for residential land auctions in Shanghai have been continuously optimized and adjusted along the market-oriented allocation direction. So, we see more and more high-quality land parcels located in the core areas of cities being pushed to the market, mainly concentrated in central urban areas such as Xuhui, Jing'an, Yangpu, Hongkou, etc.
Good land naturally attracts major developers. As of now, there have been no first-class auctions for eight batches of residential land in Shanghai this year. The premium rate of Xuhui Binjiang sloping soil plot is 30%, making it the all-time king of unit price land in mainland China; In September of this year, the premium rate of Caojiadu plot in Jing'an was 31.2%, and the floor price became the second highest in Shanghai this year; At the end of December, the second highest holder changed from the Caojiadu plot to the Longhua plot.
As the popularity of soil auctions continues to rise, there is a noticeable rebound in soil auctions outside the outer ring. The 17-02 plot of Unit 10 in Fengxian New City, acquired by Beihaojia this time, is located in the core area of Fengxian New City, adjacent to the Fengxian New City Station of the southern extension of Shanghai Metro Line 5, and also close to "Shanghai Fish", Jiukesong Art Museum, Fengxian Tianjie, and other supporting facilities such as commercial, rail transit, and ecological landscapes.
The Longfor Guancui project near this plot has achieved a subscription rate of over 100% in all three openings, with the highest reaching 210%. With three openings and three exhausts, its performance this year has broken the stereotype that "new properties are just needed and cannot be sold out". So, the future performance of Beihaojia's bid for the land is worth looking forward to.
The premium transaction of Fengxian New City land can be described as "exceeding expectations", directly breaking the previous voices of some people who were not optimistic about land auctions in the suburbs of Shanghai. In the Baoshan Songnan mixed use commercial and residential land that was traded yesterday, the proportion of commercial and office formats was 15%, and the premium rate was also 16.03% for Jinmao&Co; Winning the investment competition. Another pure residential plot located in the Songnan area of Baoshan was sold at a premium rate of 14.86%.
Industry insiders believe that Shanghai has effectively implemented the spirit of the Central Political Bureau meeting held on September 26, released positive signals to the market through a series of reform measures, injected confidence and momentum into the real estate market, and the positive response of market entities indicates that the trend of Shanghai's land auction market warming up and improving is more clear.