Beijing, Changsha, and Ningbo Land Auctions All Sold at Reserve Price

On March 17, Beijing, Changsha, and Ningbo all had residential land transfers, with all transactions closing at the starting price. Beijing sold one residential parcel for 348 million yuan, Changsha sold three residential parcels for a total of 2.457 billion yuan, and Ningbo sold one residential parcel for 633 million yuan. Industry insiders believe that the Shunyi New Town residential land in Beijing was sold at the starting price, reflecting the current companies’ cautious risk appetite and providing a relatively comfortable buffer for future project pricing.

It is understood that the Shunyi New Town residential land in Beijing covers an area of 15,671.14 square meters, with a planned construction area of 22,566.44 square meters, a floor area ratio of 1.44, an initial price of 348 million yuan, and a starting floor price of 15,421 yuan per square meter. Ultimately, Renhe Risheng Real Estate Co., Ltd. won the land at the starting price of 348 million yuan, with a transaction floor price of 15,421 yuan per square meter.

Zhang Kai, head of land market research at the China Index Academy, believes that March marked an active period for land auctions in Beijing. The sale of the Shunyi New Town residential land at the starting price reflects the current companies’ cautious risk preferences and provides a more relaxed buffer for future project pricing.

Zhang Kai stated that this parcel has a planned construction area of about 22,600 square meters, and with a low floor area ratio of 1.44 and a building height limit of 60 meters, it is expected to develop low-density, improved residential products. This aligns well with the trend of the Renhe area shifting from “necessity housing” to “quality upgrades” in recent years. The land is located in the core area of Shunyi’s old town, with mature surrounding ecological and public service facilities. It is adjacent to the dual green lung landscapes of Renhe Park and Shunyi Park, complemented by medical facilities such as Beijing Children’s Hospital and Shunyi Women and Children’s Hospital, as well as commercial support from Shangpin City Outlets, forming a reasonably sized livable community.

Zhang Kai pointed out that in terms of market competition, several projects have entered this area in recent years, creating a certain clustering effect. Projects like Chengjian Xingyu Beijing, Longfor Chenhan, and Zhuzong Fanghuali have mostly achieved 50%–60% sales rates. In comparison, the floor price of 15,400 yuan per square meter for this parcel is roughly in line with the previous land costs of surrounding projects. Additionally, another residential land parcel is about 2 kilometers to the north and is scheduled for transfer soon, which may further intensify competition in the new housing market within the area.

According to Zhang Kai, among the various sectors in Shunyi, Renhe’s positioning is quite distinctive. The Xin Guo Zhan/Tianzhu sector focuses on high-end upgrades, with a hot land market that often attracts developers like Mawan, known for high-end products. The Mapo sector has a similar positioning to Renhe, belonging to the “warm zone,” but emphasizes government services and mature residential atmospheres. Renhe, with its lower entry threshold and prominent ecological landscapes, mainly targets cost-effective development. These sectors form a complementary pattern, while the eastern Fengshang Mall area of Shunyi’s old town maintains its irreplaceable market position due to limited land supply.

On the same day, Changsha had three residential land parcels transferred, with a total land transfer area of 120,084.27 square meters and a total planned construction area of 310,050.66 square meters, with an initial total price of 2.457 billion yuan. All three parcels were sold at the starting price, totaling 2.457 billion yuan.

Additionally, Ningbo sold one residential parcel in Haishu District, with a land transfer area of 35,336 square meters, a planned construction area of 56,537.6 square meters, a floor area ratio of 1.6, an initial price of 633 million yuan, and a starting floor price of 11,197 yuan per square meter. Ningbo Zhaoyuan Real Estate Development Co., Ltd. won the land at the starting price of 633 million yuan, with a transaction floor price of 11,197 yuan per square meter.