Spark Global Limited reports:
Following the centralized land supply in 22 key cities across the country, the first centralized land supply in Xi ‘an has also uncovered the mystery. However, compared with 22 key cities, Xi ‘an’s first show of centralized land supply is a little hasty.
At the end of June, in the first auction of 5 residential land for centralized land supply in Xi ‘an, there were 2 failed auctions, and 1 stopped. Among the acquired plots, Jinmao won 71 mu of residential land in High-tech Zone with a comprehensive cost of 28.97 million yuan/mu and a premium of 20%, while Greentown won 109 mu of residential land in Space Base with a comprehensive cost of 24.4 million yuan/mu and a premium of 30%.
However, “China Business Daily” reporter investigation found that relative to the calm of the land market, Xi ‘an property market is still hot. In June 2021, the average price of new homes in 100 cities nationwide was 16,063 yuan per square meter, up 0.36 percent month-on-month and 3.89 percent year-on-year. Among them, the price of new residential buildings in Xi ‘an rose 0.59 percent month-on-month, ranking the 16th in the list, with the average price of the sample residential buildings at 11,218 yuan/square meter.
“The goal of centralized land supply is to stabilize land prices, housing prices and expectations. The stability of the centralized land supply for the first time in Xi ‘an is expected.” An interviewed official from the Xi ‘an Housing and Urban-Rural Development Bureau judged that with the implementation of the city’s centralized land supply policy, the housing price in Xi ‘an will gradually stabilize.
The debut landed smoothly
In Xi ‘an, a 115-mu plot of land was “closed” after 139 rounds of bidding and finally won by lottery. Therefore, the competition for centralized land supply in Xi ‘an was predicted to be extremely fierce before the shooting began.
However, the final result was unexpected, many lots were sold at comprehensive cost price. On June 29, 5 lots of land were auctioned in Xi ‘an, which were located in Daming Palace, High-tech Zone and Space Base Block. Among them, 4 were residential land and 1 was mixed land for commercial and residential use, with a total area of 419.1 mu. To our surprise, two plots of land located in Daming Palace were not auctioned, and one plot in Hi-tech Zone was suspended. The remaining two plots were acquired by Jinmao Group and Greentown Group respectively.
Among them, Jinmao Group won the plot of GX3-33-9, which is located to the south of Yudou Road, west of Jingjiu Road and south of Gaoxin 12th Small School. The land area is 47,876.4 square meters, about 72 mu. The land is residential land, and the transaction price is 1.8 billion yuan.
The unit price of this piece of land is 25.07 million yuan/mu, and the floor price is 13,429 yuan/square meter, with a premium rate of 20%. The planning plot ratio is no more than 2.8, and the average sales price of commercial residential blank is no higher than 23,741 yuan/square meter.
In addition, Jinmao Group shall own 15% of the leased housing, with a building area of 19,674.6 square meters (including a building area of 13,116.4 square meters for 10% basic self-owned rental housing, with a self-holding period of 10 years), In accordance with the requirements of the Notice on Further Standardizing the Distribution and Construction of Public Rental Housing for Commercial Housing Projects issued by Xi ‘an Housing and Construction Bureau, it shall undertake the allocation and construction of public rental housing.
The next day, June 30, Xi ‘an sold another 15 plots of land. Among them, the main competitive units are Shaanxi Construction, Contemporary Real Estate, Xingzhengyuan, Ocean Group.
The reporter noted that although a total of 20 plots of land were released before and after the centralized land supply in Xi ‘an, they included 9 plots of land for resettlement, 1 plot of land for shared property rights, 1 plot of land for commercial services and 2 plots of land for public rental housing. There are not a lot of pure residential land, and some of the transferred areas are not very large. For example, Shaanxi Construction won the plot CB2-8-315-3 this time, and the transferred area of pure residential land is only 35.218 mu.
“The stability of the first land supply in Xi ‘an is mainly based on two aspects. The first is that the future sales price is preset. The second is that the plots given have some restrictions, which makes many real estate enterprises can only wait and see, and dare not start.” A real estate enterprise executives told reporters that the resettlement of the housing of the land are basically local enterprises picked. For example, “the city of xi ‘an high-tech zone larger kernel of real estate development co., LTD.”, “city of xi ‘an high-tech zone more double xing real estate development co., LTD.”, “city of xi ‘an high-tech zone more four real estate development co., LTD.”, the three companies shareholders are xi ‘an dragon real estate development co., LTD., and dragon million property belongs to high-tech group subsidiary.
Accordingly, this personage judgment, this concentrates for the land and cannot truly express the willingness of the house enterprise to the Xi ‘an land market. Later, the centralized land supply in Xi ‘an may appear a different scene.
Can house prices rise in check?
According to data from the National Bureau of Statistics, the property market in Xi ‘an continues to heat up, with the sales of new commercial residential buildings in Xi ‘an rising 1.0% month-on-month in June (up from 0.5% in May), a slight increase of 0.5 percentage points from the previous month. The year-on-year increase was 8.2% (from 8.0% in May), a slight increase of 0.2 percentage points compared with the previous month, marking the 63rd consecutive monthly increase of new homes in Xi ‘an.
So, with the land policy of Xi ‘an, Xi ‘an housing prices can be suppressed?
Reporters have noted that in recent years, with the continuous rise of housing prices in Xi ‘an, the relevant property market regulation policies frequently introduced. On March 31, 2021, xi ‘an people’s government office issued “about to establish linkage mechanism to promote stable and healthy development of the real estate market real estate notice (hereinafter referred to as the” 3 · 30 policy “) in the clear, resolutely implement the central committee and the State Council “the house is used to live, not to fry” decision deployment, further land price, stable prices, stable expectations, Promote the sustainable, steady and healthy development of the real estate market in Xi ‘an.
It can be seen that in the “3·30 Policy”, under the keynote of “housing and housing not speculation”, “land price stability” occupies the primary position and becomes the primary task and goal. In addition, it is worth noting that the first article of the “March 30 Policy” proposes to establish and improve the linkage mechanism of real estate, implement the transfer method of “price limit, quality and competitive land price” for housing land, and make it clear that the residential land transfer announcement will be issued quarterly every year and the public transfer of state-owned construction land will be centralized organized. Bidders who break faith and exceed the “three red lines” are not allowed to participate in land auctions.
At the same time, from the perspective of the centralized land supply plots in Xi ‘an, many plots have obvious control measures, such as the proportion of construction, etc., therefore, there are not many “pure residential land” in the true sense. Therefore, the majority of housing enterprises or wait-and-see attitude.
As for Xi ‘an’s housing price will be stable because of the land supply policy, a number of real estate enterprises said that the main determinant of the price is supply and demand, if the supply of land can be increased, then Xi ‘an’s housing price is expected to be stable, or even decline.
article links：A number of land deals were completed at low prices
Reprint indicated source：Spark Global Limited information