Except for the Pingjiang New City plot and the Lake East plot, which has a premium, the remaining plots in the Suzhou land auction are all sold at the reserve price.
Viewpoint Real Estate Network Different from Nanjing’s quick fight, the third round of centralized land supply in Suzhou lasted for 3 days. During these 72 hours, there was no first-rate auction for the 25 plots supplied, and a total of 40.188 billion yuan was collected.
So far, the last large-scale land auction in Suzhou this year has ended.
Looking at the Suzhou land auction market in 2021, Vanke first entered Wuzhong City South, Greentown, and Poly Development in the first half of the year. The enthusiasm for land acquisition faded, the reserve price was sold, the land parcels were sold out, and local real estate companies came to the center of the stage.
Judging from the performance of land auctions, the results of the three batches of centralized auctions in Suzhou are indeed more stable than the second batch of land supply. After all, at the moment when private enterprises are unwilling to take land, there is no land parcel auction, and a smooth transfer is enough. However, from the transaction data, compared with the first batch of land auctions, more than half of the 24 plots entered the one-time quotation stage, and the second batch of 15 plots also had 1 land capped and entered the one-time quotation. The temperature difference between the three batches of land auctions is gradually obvious. .
Inventory of the real estate companies that participated in the centralized land supply in Suzhou. Su Gaoxin, China Construction East, Suzhou Xingao Green Construction, and Xiangcheng Urban Construction all took 2 land, and they played a stable role; Nanjing Anju, Tiandiyuan, Love Real Estate, Dahe Housing, China Construction The three bureaus of Dongfu and China Construction have won.
Reserve price transaction
Except for the Pingjiang New City plot and the Lake East plot, which has a premium, the remaining plots in the Suzhou land auction are all sold at the reserve price.
The result is not surprising. The two popular plots have their own highlights, and there are many real estate companies competing for bidding, including China Shipping, China Resources, and Poly Real Estate. Moreover, in this land auction, Suzhou has further relaxed the threshold for participation.
The quality of this round of plots is better than that of the second round, most of which are located in popular sectors, and the threshold for participation has also been significantly reduced. The margin ratio has been changed from 30%-50% in the second round of centralized transfer to 30%; the land auction park land is excluded Outside the block, the remaining land parcels participating in the centralized land supply will all cancel the market guide price; change the down payment ratio of the land transfer fee.
But even so, the real estate companies still don’t buy it. Except for the 2 plots that have reached the premium rate, there is only one real estate company that participated in the registration of the remaining 23 plots.
For example, Love Real Estate Group Co., Ltd. bid for a land of 32,800 square meters on the north side of Jinhu Road and the east side of Pangshan Road in Wujiang Development Zone at a base price of 609 million yuan, with a floor price of 10,300 yuan per square meter. The location of this plot is not bad. There are educational resources such as Canal Experimental School, Peking University New Century Suzhou Foreign Language School, Wujiang Economic Development Zone Aixin Primary School, and commercial facilities such as Oscar Plaza Shopping Center, Wankelong Shopping Center, Huijin Central Plaza, etc. , The living atmosphere is strong. Prior to March, Love Real Estate had won the 91,100-square-meter commercial and residential land in Zhangjiagang, Suzhou, west of Zijing Road in the Economic Development Zone at a reserve price of 1.845 billion yuan, and successfully entered Hong Kong City for the first time. Similar to the land plot in Wujiang District acquired by Love Real Estate this time, there are Jiyang Lake Experimental School, City No. 2 Middle South Campus and Jiyang Primary School South Campus, Zhangjiagang Aoyang Hospital, Xincheng Wuyue Plaza, Red Star Macalline, Metro has an excellent geographical location.
Love real estate is not the only real estate company that gets good land at the reserve price. On the second day of the centralized land auction in Suzhou, Shanghai Zhongjian Dongfu picked up 2 plots with a reserve price of about 6.4 billion yuan. Among them, 3.63 billion yuan won the Sudi No. 2021-WG-76 residential plot in the New District Science and Technology City, covering an area of 114,900 square meters. The plot is located at the core of the Science and Technology City, and there are three schools in the Science City Jinfeng Experimental Kindergarten, Science and Technology City Experimental Primary School, and Science and Technology City Experimental Junior High School. In addition, there are Xingyueli Commercial and Nobel under construction around the plot. Lake Park.
In addition to the science and technology city plot, the planned Putuoshan Road north and south of the high-tech zone Tongan Town, and the planned Longtanggang Road East and West Science City plots were also taken by Shanghai Zhongjian Dongfu, with a total price of 2.723 billion yuan and a land area of 202,400 yuan. It is planned to be residential + commercial land. The average price of surrounding communities is around 23,000-25,000 yuan/m2. It is relatively close to the Suzhou campus of Nanjing University. The land investment supervision agreement also clearly requires the construction of an ice and snow world. It is reported that Su Gaoxin has signed a contract with Sunac Cultural Tourism Group to introduce the “Ice and Snow World” business format.
Collectively
In addition to environmental factors, the cooling of Suzhou soil auctions actually reflects the problem of the local property market in Suzhou: high inventory. As of October 2021, there are 361 stock residential projects to be developed in Suzhou, and the current inventory of new houses is 70,495. Judging from the current situation, the Suzhou real estate market will usher in a long period of dissolution.
In this case, local real estate companies choose to buy land by bidding, which has both advantages and disadvantages.
Some people in the industry told the new real estate media that there are currently two voices in the market. Some believe that state-owned enterprises and local real estate companies will only aggravate the stock accumulation problem in the Suzhou real estate market; the other believe that the land acquisition is first low. The price has successfully picked up land, undertook part of the financial pressure, and then competed for the right to speak in the secondary market, and is more able to cooperate with other real estate companies to trade. Take Su Gaoxin as an example. The company once worked with Yanlord and Hengtai to develop the Suzhou Olympics land parcel. The total price of 100 million yuan was won, and the premium rate was as high as 29%.
This shows that Su Gaoxin’s land acquisition strategy is cooperation-oriented. In this land auction, Su Gaoxin also won the Huguan Lot 74 and the Huguan Lot 75 with a reserve price of 7 billion yuan. The two plots are only one way apart.
Throughout this auction, there are not many applications for private real estate companies. In addition to funding, it also involves some rigid conditions such as the amount of land acquisition by some developers that cannot exceed 40% of annual sales, and the entry threshold for qualifications to participate in the auction, even if the land is launched. The overall quality is high, and the capital requirements for real estate companies are relaxed, and the threshold for bidding is lowered. Private companies can’t raise their hands generously.