Home » Beijing’s third land auction ends, state-owned enterprises become the main force in acquiring land | Beijing property market | Passed auction

Beijing’s third land auction ends, state-owned enterprises become the main force in acquiring land | Beijing property market | Passed auction

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[Epoch Times December 28, 2021](Epoch Times reporter Liu Yi comprehensive report) On December 27, the third land auction in Beijing this year ended. 12 lots were sold, two of which were sold out, and 7 were sold at the reserve price. Only one private enterprise participated in the auction, and the rest were state-owned enterprises.

Based on the news from the Mainland’s Securities Times and other media, among the 12 residential land sold in the third batch of land auctions in Beijing, 2 were unsold, 7 were sold at the reserve price, 2 were sold at the highest online quotation, and 1 was on-site. Bidding. The total transaction price of the 10 parcels reached RMB 27.725 billion, a drop of about 46% compared with the second batch of land auction transactions, which was almost cut in half.

According to news from Times Weekly on the 27th, a total of 16 companies participated in the third batch of land auctions, including Beijing Investment, Gezhouba, Poly, Power Construction, Gemdale, China Merchants, Jinmao, China Construction First Bureau, and Longhu. Compared with the second batch, the main force of land acquisition in the third batch of land auctions in Beijing is still mainly state-owned enterprises.

Not only in Beijing, but in the third round of centralized land supply, the participation of state-owned assets has been further enhanced and has become an important underpinning force. “Securities Times” quoted news from Shenang Securities on the 28th that state-owned central enterprises in Changchun, Changsha, Shenyang, Tianjin, and Beijing accounted for 100%, 82%, 75%, 72%, and 75% of the land respectively. Cities where private housing companies are more motivated to participate in the auction are limited to Wuhan and Hangzhou where the land market performs better.

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In addition, in addition to state-owned real estate companies, urban investment companies with local government backgrounds have also begun to take the stage. Among the 20 land transactions in Wuxi, 17 were acquired by the government platform; in the 31 transactions involving land for housing in Nanjing, 18 were delisted by government platform companies. In the third round of centralized land auctions in Shenzhen, Suzhou and Guangzhou, the participation rate of urban investment companies also exceeded 50%.

“Securities Times” stated that in the second round of centralized land auctions, state-owned real estate companies and urban investment companies had a certain degree of participation. This can also be regarded as an act of boosting the market with insufficient market confidence.

Commentator Wang Jian stated in his YouTube program on December 27 that when local authorities sold land to state-owned enterprises and urban investment companies, they actually sold land from their left to their right. They were all one family, while state-owned enterprises and urban investment companies. You can get low-interest loans from the bank.

Caixin.com quoted an analysis by Gao Gao, the president of Beijing Lianjia Research Institute on the 27th, saying that the three red lines of regulatory requirements and the contraction of housing-related finance have led to a decline in market confidence and expectations, and the overall real estate market has declined. Since the implementation of centralized land supply, some of the projects of the first batch of land acquisition companies have performed poorly, and it is difficult for developers to return funds. On the whole, under the combined effect of high cost, low profit, multiple restrictions and other factors, enterprises tend to be cautious in acquiring land, and land acquisition enterprises are mainly central enterprises and local state-owned enterprises.

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Guo Yi, the chief analyst of Heshuo Institution, also told the Times Weekly that as the end of the year is approaching, the core goal of the company is to pay back and achieve performance, and the willingness to invest is not strong.

According to the analysis of the “21st Century Business Herald” on the 28th, in this year’s land auction market, three rounds of concentrated land auctions have experienced a “hot-cold-stable” heat change. High, many real estate companies registered vest companies participated in land grabs; the second round of land auctions fell sharply, lost auctions and bids increased, and the premium rate decreased. In the second round of concentrated land auctions, Changsha, Beijing, Shenyang, Hangzhou, Hefei , Guangzhou’s failed auctions and suspended transactions accounted for more than 50%. Hangzhou’s first pilot-launched competitive quality land parcels all failed due to insufficient registered real estate companies. Changchun, Fuzhou, Tianjin, Chongqing, and Chengdu accounted for failed auctions and suspended transactions. Both exceed 30%; the three rounds of concentrated land auctions have reduced the phenomenon of false auctions and stale bids. State-owned real estate companies have performed strongly and have become an important force to support the market. The confidence of real estate companies has not been restored.

The relevant person in charge of a listed real estate company in Beijing told the reporter of “21st Century Business Herald”: “The company will pool its funds and use it first to pay wages and repay debts. It has no energy to participate in the local auction.” In the wait-and-see state, the willingness to acquire land is not strong, and most real estate companies have limited funds.” Although the third round of centralized land auctions has a large quantity and high quality, so far, most real estate companies have not felt it. To the improvement of credit and market level.

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Regarding future land trends, Yan Yuejin, director of the Think Tank Center of Shanghai E-House Research Institute, told the “21st Century Business Herald” that the future land market trends still depend on the recovery of the residential market and the restoration of confidence in real estate companies. It is expected that next year’s centralized land supply rules will continue to make targeted adjustments based on market conditions.

Zhang Bo, Dean of 58 Anju Guest House Industry Research Institute, predicted to the Times Weekly that under the current policy environment, the market for local auctions next year will continue the characteristics of the third local auction.

Editor in charge: Li Muen#

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