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Cailianshe News, August 7 (Reporter Wang Haichun)The national record for the highest price per unit of land has been broken.

On August 7, Shanghai ushered in the fourth batch of land auctions in 2024. A total of 5 plots of land were sold in this land auction, with a total starting price of 9.767 billion yuan. In the end, all 5 plots of land were sold, with a total transaction amount of about 10.95 billion yuan.

Among them, the starting floor price of the land in Xietu Street, Xuhui District reached 101,000 yuan/square meter, becoming the biggest focus of this land auction.

The starting floor price of this plot of land has surpassed the floor price record of 100,300 yuan/square meter held by Rongsheng in 2016, locking in the new "land king" in terms of unit price in advance.

The land parcel attracted seven bidders, including China Merchants, Xuhui Urban Investment Group, China Resources, and Greentown, and after 72 rounds of fierce bidding, the land price reached the upper limit and entered the lottery stage. In the end, Greentown won the land parcel at a price of 4.805 billion yuan, with a floor price of 131,045 yuan per square meter and a premium rate of 30%.

"The land parcel in Xietu Street, Xuhui District has become the project with the highest transaction floor price per square meter among all residential land in the country," said Yan Yuejin, deputy director of the E-House Research Institute.

As a result, the above-mentioned land parcel broke the record of the most expensive land in the country and became the new highest-priced land in the country.

The total price and unit price of the land are not low, but many real estate companies are still competing fiercely for it. Analysts believe that this has a lot to do with the land's superior location.

Lu Qilin, research director of 58 Anjuke Research Institute, pointed out that from a geographical point of view, the site has quite significant advantages. It is adjacent to Shanghai's inner ring elevated road, and is located in a prime location where two subway lines intersect. It is only a few hundred meters away from the Huangpu Riverside Scenic Belt, and its locational advantages are quite obvious.

"In terms of supply, the new housing market in this area is currently in short supply, especially high-quality housing is relatively scarce. The future supply of new homes will be mainly concentrated in the relatively distant upstream area of ​​Xuhui Riverside. This plot of land has thus become the focus of market competition." Lu Qilin said.

In addition, industry insiders believe that this is also related to the land appreciation and a large number of potential customers brought about by urban renewal.

"The wave of urban renewal is reshaping the city's appearance with unprecedented force, which will also form new impetus and generate considerable demand. According to public information, Xuhui District has planned a grand blueprint covering 62 major projects and 132 sub-projects, among which the development and construction of West Bund Financial City has been given a pivotal position. Against this background, urban renewal will also bring a huge potential customer base to Xuhui District and the entire city. In addition, the renovation projects of Dong'an Village 1 and Dong'an Village 2 have unique location advantages. The projects there are favored by the market and are in fact being carried out under such a market background." Lu Qilin said.

It further stated that affected by the decline in the new home sales market, real estate companies are currently facing certain financial pressures, investment demand has weakened, and the overall land market transaction scale has shown a relatively obvious decline.

However, against the backdrop of a decline in overall land transaction volume, transactions of high-priced plots of land remain highly active.

It is worth noting that in March this year, Greentown won a plot of land in Suzhou Industrial Park at a price of 3.082 billion yuan. The transaction floor price of the plot exceeded 65,000 yuan per square meter, breaking the local record. Compared with the floor price of the most expensive plot in Suzhou in 2023, the increase in the plot is amazing.

Lu Qilin pointed out that the land plots launched in Shanghai this time were sold at a price of more than 130,000 yuan per square meter, which also demonstrated the market's continued pursuit and fierce competition for high-quality land plots.

Yan Yuejin said that an important feature of the national land market in the past two years is that when real estate companies acquire land, they will focus their funds and resources on high-level cities, high-quality plots and high-quality properties.

According to the statistical information on pure residential land transactions in Shanghai and key cities across the country from 2015 to August 6, 2024 by the E-House Research Institute, the transfer of high-quality residential land in key cities is mostly concentrated in the core areas of the city, such as Changning, Hongkou, Xuhui in Shanghai, Haidian in Beijing, Haizhu in Guangzhou, Bao'an in Shenzhen, and Jinjiang in Chengdu.

"This type of land plot located in core areas has become the first choice for many real estate companies to purchase land because of its good location advantage and excellent market absorption," said Yan Yuejin.

In Lu Qilin's view, the current land market is in a period of deep adjustment. On the one hand, the overall transaction volume has declined, reflecting changes in industry funding pressure and market expectations; on the other hand, the continued transaction of high-priced plots of land reveals that high-quality plots of land are still favored and contested by the market.

Industry insiders pointed out that the successful transfer of high-priced residential land and high-quality residential land in first-tier and hot cities will bring about several positive impacts: it will help release demand for improved housing, increase fiscal revenue, and guide market expectations to further improve.

"The supply and successful transfer of high-quality residential land have sent a positive and strong signal to the market. On the one hand, this reflects the relatively positive investment intention of real estate companies. On the other hand, it also shows that companies are optimistic about the future development prospects of these cities and are willing to invest more funds in the projects." Yan Yuejin added.

Analysts believe that the sale of such plots, coupled with the relaxation of price limits and other policies, will objectively help to strengthen and stabilize housing prices in the future. This will have a positive effect on boosting the market confidence of participants in the real estate market and restoring confidence in the real estate industry chain.