From December 30th to 31st, the Shanghai land market conducted the eighth batch of land transfer activities, with a total of 7 residential plots distributed in Xuhui, Changning, Baoshan, Fengxian, and the Free Trade Zone Lingang New Area, with a total starting price of 16.48 billion yuan.
In the end, all 7 plots of land were sold, with a total collection of approximately 19.23 billion yuan.
Chen Jiahao bet on Xuhui Longhua
The most eye-catching aspect of this land auction is undoubtedly the scene where private enterprise Chenjia, a state-owned enterprise, heavily bets on the success of Xuhui Longhua.
The N06-22 plot of S030501 unit in Xuhui District is located between the inner and middle ring roads, in the mature Longhua area, with complete surrounding facilities. The starting price of the plot is 3.13 billion yuan, and the transfer area is about 21900 square meters, with a plot ratio as low as 1.59. The low-density configuration inside the middle ring road provides great imagination space for real estate companies to create high-end residential buildings in the future.
More importantly, the Longhua area is not far from the Xuhui Binjiang area, which is home to the XH128D-07 plot in Xietu Street, Xuhui District, the newly emerged highest priced "land king" in China this year. Before filming, the market often compares two plots of land together and predicts a high level of popularity.
After the official start of filming, the four bidders, Chenjia Development, Poly Development, Zhonghai+Xuhui City Investment Joint Venture, and CMB+Yuexiu Joint Venture, made decisive bids and had a strong desire to acquire land. The bids were constantly refreshed, and the increase in price gradually increased from the initial 2 million yuan to 10 million yuan.
After 101 rounds of bidding and over 50 minutes of intense bidding, the land parcel reached a cut-off price of 4.382 billion yuan, with a premium rate of about 40%. According to regulations, bidders need to confirm whether they accept the suspension price and enter the stage of competing for the "high-quality construction" indicator. At this moment, Poly Developments and the joint venture of Zhonghai and Xuhui City Investment raised their hands to signal their abandonment, while the other two fought again.
Lu Wenxi, Chief Analyst of Shanghai Zhongyuan Real Estate, said that some real estate companies are more concerned about investing in high-quality construction, which will increase development costs and compress profit margins.
In the end, Chenjia Development won the land at the cost of a maximum price of 4.382 billion yuan, 7000 yuan/square meter installation standard, and 1840 square meters of public service facility area, and the joint venture of China Merchants and Yuexiu suffered a narrow defeat. The transaction floor price of over 126000 yuan/square meter has also led to speculation from the outside that "future market entry is expected to impact 200000 yuan".
Chenjia Development, which acquired land, is a young real estate enterprise that has only been established for 4 years and has a good reputation in Shanghai.
Jiabaidao, which operates in the Putuo Changfeng sector, subscribed in May this year and received 1000 subscriptions for 422 units, becoming a popular stock at the time and having advantages in product development and construction. However, during the subscription period, due to the long review cycle and multiple rejections of materials by the sales office, the buyer believed that there was "artificial screening of customers", which led to a rights protection incident.
This time, Chen Jia Development may want to create a new "Jia Bai Dao" by defeating state-owned enterprises to win the Xuhui Longhua plot.
According to Qichacha, the legal representative of Chenjia Development is Guo Bin, Cui Shuai is the chairman, and Liang Fei is the supervisor. All three have previously worked at Zhonghai. Among them, Cui Shuai has served as the General Manager of China Overseas Land Development Shanghai Company, Liang Fei as the Deputy General Manager, and Guo Bin has served as the General Manager of China Overseas Land Development Hainan Company. The operation of the 'old general of Zhonghai' has also added some confidence to the heavy investment in land harvesting.
In addition to Chenjia Development, Beihaojia, a private enterprise under Beike, has also achieved success. It acquired the 17-02 plot of Unit 10 in Fengxian New City, Fengxian District, with a total transaction price of 697 million yuan and a premium rate of 13.89%, equivalent to a floor price of approximately 22800 yuan/square meter. The market believes that the plot of land is more than 500 meters away from the Fengxian New City Railway Station and is separated by Longhu Tianjie, creating a rich living atmosphere and suitable for first-time homebuyers.
This is not the first time Shell has ventured into the field of homestead development. In September of this year, Beihaojia won the third phase of the Chengdu Jinjiang District Financial City plot for nearly 1.1 billion yuan. At that time, the company revealed that the project would be developed into a high-end residential product, and it was expected that the entire process would be independently operated by the Beihaojia team.
This is Beike's first appearance in Shanghai and also the first time it has acquired land in a first tier city. Lu Wenxi believes that Beike's biggest advantage lies in marketing. The second-hand housing transactions in the region are active, and the company has accumulated many customers. Moreover, the project volume is not large, and the traffic oriented products are more suitable for the company to practice in Shanghai first.
The above-mentioned real estate companies competing to acquire land have also sent more positive signals to the market. Lu Wenxi commented that with the stabilization of the real estate market and the return of market sentiment, real estate companies' confidence in the future market stabilization and improvement is increasing.
Jinmao and CMB increase their efforts to replenish their positions
At the same time as private enterprises emerge to acquire land, some "old faces" of state-owned enterprises are also actively replenishing their positions.
In the eighth batch of land auctions, state-owned enterprise Jinmao performed a hat trick by capturing all three Baoshan plots.
Specifically, the K1-11 plot of Unit N12-0402 in Baoshan District and the D1-04 plot of Unit N12-0402 in Baoshan District are relatively close, both located in the Songnan Plate of Baoshan District, within the outer ring road, with expected subway planning. After several rounds of bidding, the Jinmao+China Merchants Shekou consortium successively won these two plots of land, with transaction prices of 4.307 billion yuan and 2.929 billion yuan respectively, with premium rates of 16.03% and 14.86%.
The other plot of BSP0-0801 units 13A-01 and 02aA-04 in Baoshan District was sold at the bottom price, and Jinmao teamed up with Yangxing Urban Construction and Baoye to win, with a transaction price of 3.116 billion yuan. Overall, the total price of the three plots of land exceeds 10.3 billion yuan, and the total area sold exceeds 240000 square meters.
For Jinmao, this greatly alleviates the pressure of soil storage in Shanghai.
According to the interim report, Jinmao has obtained 5 property development projects in Shanghai before 2024, including the Jinmao Mansion project in Shanghai Central, the Tianyue project in Jing'an, the 08-02 plot in Hengmian Second Batch, the Jinmao Mansion project in Putuo, and the Future City project, with a total saleable area of approximately 710000 square meters. Among them, the 08-02 plots of Jinmao Mansion in Central and Hengmian have been opened for sale multiple times this year.
But in the past two years, it has not achieved much. In July last year, Jinmao obtained the Jinmao Mansion project in Central, and after more than a year, it jointly won the Taopu plot in Putuo with China Resources and Jianfa Real Estate for a bottom price of 1.581 billion yuan in November this year. This time, we won three cities in a row and increased our grain reserves in a timely manner.
Continuous replenishment is also achieved through investment promotion. This time, in addition to the two Baoshan homesteads jointly acquired by Jinmao, they also partnered with Yuexiu to acquire a Changning plot of land, with a transaction price of 2.183 billion yuan and a premium rate of 24.54%. The total amount involved in the three plots of land exceeds 9.4 billion yuan.
Some people feel proud in the spring breeze, while others leave with regrets.
In the eighth batch, both Zhonghai and Poly Development participated in the bidding for the Xuhui Longhua and Changning plots, but did not receive any returns; Xiangyu Real Estate applied for the Fengxian New City plot, but ultimately lost to Beike.
It should be noted that the failure to replenish the position this time has put China Overseas Land in a somewhat awkward situation.
In the first 11 months, Zhonghai Real Estate ranked first in the equity sales amount ranking of CRIC Shanghai real estate companies with a total equity sales amount of 52.164 billion yuan, opening up second place with over 29.2 billion yuan. This is mainly due to the hot sales of two high-end luxury residential projects, Zhonghai Lingdi and Zhonghai Shunchang Jiuli.
But according to the 2023 annual report, only three ongoing projects of Zhonghai Real Estate in Shanghai remain: Zhonghai Lingdi, Zhonghai Shunchang Jiuli/Hengchang Jiuli, and Haihai Heji, which are currently being phased out. In 2024, only one plot of land from Yangpu Dinghai Community was taken out in the sixth and seventh batches of land auctions, with a total area of about 40000 square meters for sale. The "ammunition" supply is clearly insufficient. Whether it can win the title of "Cicada Joint Sales Champion" next year depends on its subsequent land acquisition situation.
With the conclusion of the eighth batch of land auctions, the Shanghai 2024 land market has officially come to an end.
According to data from the Zhongzhi Research Institute, in 2024, a total of 48 residential land parcels were sold for centralized land supply in Shanghai, with a total construction area of 3.3736 million square meters and a total land auction transaction amount of 132.162 billion yuan, a significant decrease compared to last year.