Entering June, the peak period for the first centralized land auctions in key cities has passed, and the second batch of centralized auctions has quietly opened. As the first city to start the second local auction, Xiamen’s popularity for this local auction is still not low. Specifically, Xiamen has sold 11 plots of land this time. Although only the P04 plot in Huli was sold at the upper limit price, the premium rate of the remaining plots is not low. The premium rate of more than half of the plots exceeds 20%, and the average premium rate is At 23.62%, the competition for land auctions is still fierce, but compared with the average premium rate of 29% in the first centralized auction, there is still a certain drop.
After the “second auction” in Xiamen, the second round of concentrated land auctions in Changchun on June 17 and 18 again “cold.” Over 90% of the plots were sold at the reserve price, and the total premium rate of land auctions was only 0.4%, which was higher than the first concentrated land auction. The enthusiasm has dropped again, and the premium rate of housing-related land in 2020 is 4.2% lower than that of the whole year of 2020. The market is obviously “cooler”.
Judging from the recent land-related policies issued in various places, in order to stabilize land prices, many hot cities have adopted the method of “land price limit + lottery (one-time quotation)” for land auctions. At the same time, in order to increase the bid winning rate, some real estate companies have used multiple vests to participate in the hunting of land, resulting in the high popularity of land auctions. In order to prevent this phenomenon, many cities have banned vests from participating in auctions. Nanchang and Dongguan have also recently introduced policies to prohibit them. The vest patted the ground.
On the whole, the centralized land supply policy itself, whether it is the original intention or the “dual centralized” approach, will help “control land prices and suppress premiums” to a certain extent, and needs to be adjusted according to the different conditions of each city during the specific implementation process. For example, compared with the first round of centralized land auctions in Changchun, the market performed more “cold”, the premium rate once again declined, and “reserve price transactions” and “lost auctions” became high-frequency vocabulary; even for land that was sold at a premium, Land prices have also fallen further compared to the previous centralized land auction, and the enthusiasm of real estate companies for land auctions has declined again. Although the decline in land prices is in line with the government’s original intention of implementing “centralized land supply”, considering that the Changchun property market has entered a trough in the past two years, the sale cycle has exceeded In 20 months, there is an increased risk of inventory.
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Xiamen’s second round of local auctions continues
The first batch of centralized land supply in 22 cities has not yet been completed, and the second round of centralized land auctions in Xiamen has followed one after another. On June 10, 2021, Xiamen’s second centralized land supply was officially sold. In Xiamen’s second round of land supply, a total of 8 real estate companies bid for 11 plots containing houses, with a total transaction amount of 34.405 billion yuan, and an average premium rate of 23.62 %, compared with the 29% average premium rate in the previous round of centralized land supply.
On the whole, after the two rounds of land supply, Xiamen sold a total of 16 plots, with a transaction amount of nearly 53.4 billion yuan and a total area of 1.98 million square meters. Among them, the second round of land supply is the largest. Judging from the announced centralized land supply plan, the second round of 11 plots of land is the largest and most widely distributed among the three batches. The first and second rounds of Xiamen land auctions totaled 1.98 million square meters, which is close to 82% of the land transactions in 2020, which accounted for 85% of residential sales last year.
In terms of transactions, compared with the first round of 5 plots and 3 topped transactions, only one of the 11 plots in the second round of centralized land supply reached the highest price limit (the plots were all subject to “price limit and land price limit”. Auction).
In view of this, after increasing supply, Xiamen’s second round of centralized land auctions remained hot, but compared with the first round of land auctions, there was still a certain decline.
Table: Transaction status of the second batch of centralized land supply and residential plots in Xiamen
Data source: CRIC
Over 90% of the land in Changchun was sold at the reserve price
Following Xiamen, Changchun also conducted the second round of centralized land supply on June 17 and 18, 2021.
In terms of scale, the scale of the second round of land auctions in Changchun has increased compared with the first round. Both the supply and the supply area have increased significantly compared with the first time, especially the supply area, which has an increase of 44%.
In the case of a significant increase in the scale of supply, the second round of concentrated land auctions in Changchun further declined. It is understood that the land auction in Changchun supplied 68 residential land, of which 8 were suspended ahead of schedule, 42 residential land was finally sold, and 18 failed auctions. The rate of failed auctions was as high as 38%. The rate of failed auctions has increased significantly compared with the first round.
Consistent with the first round of land auctions, the second round of centralized auctions in Changchun still adopts the mode of “limited land prices and bidding for construction”. But in fact, of the 42 housing plots that were sold in the second round of centralized auctions, only 3 were sold at a premium, and none of them reached the highest price limit. Among them, the highest premium rate was located in the Auto Economic Development Zone, which was awarded RMB 1.232 billion by Vanke. In the bidding, the premium rate was 5.17%, and the floor price was 3660 yuan/square meter. The remaining 39 transactions were all traded at the reserve price, accounting for over 90%. From the perspective of market enthusiasm, the total premium rate of local auctions in this field is only 0.4%, which is once again lower than the first concentrated local auctions.