Yiwu homestead transaction premium is 40.54%: Local private enterprises acquire land against the trend
Recently, the national land market has been unevenly hot and cold, but Yiwu, Zhejiang has staged a "land grabbing war" against the trend. On October 11, a residential land in Yiwu City was sold at a high premium rate of 40.54%, and was won by local private enterprise Yiwu Jinhe Real Estate Development Co., Ltd., becoming one of the hot topics in the real estate field in the past 10 days. This phenomenon not only reflects the differentiation of regional markets, but also highlights the strategic layout of private capital during the policy adjustment period.
1. Core data on land transactions
| index | Value |
|---|---|
| Plot location | Jiangdong Street, Yiwu City |
| Land area | 32,456㎡ |
| Starting price | 872 million yuan |
| Transaction price | 1.226 billion yuan |
| Premium Rate | 40.54% |
| Winning the company | Yiwu Jinhe Real Estate |
| Floor price | RMB 18,995/㎡ |
2. Market background analysis
1.The differentiation of the land market in the country has intensified: According to CRIC data, the average land transaction premium rate in 300 cities across the country in September was only 3.2%, while the transaction premium rate in Yiwu this time exceeded 40%, in sharp contrast. The recent premium rates of residential land in core cities in the Yangtze River Delta such as Hangzhou and Suzhou are generally below 15%.
2.Yiwu economic resilience support: In the first half of 2023, Yiwu's GDP growth rate reached 8.1%, and the total import and export volume increased by 12.3% year-on-year. The average daily passenger flow in small commodity cities returned to the 2019 level. The vitality of the real economy provides fundamental support for the real estate market.
3.Changes in investment strategies of private enterprises: Against the backdrop of the shrinking front of leading real estate companies, regional private enterprises have begun to target high-quality plots in core areas. Jinhe Real Estate, which acquired the land this time, is a local enterprise in Yiwu. In 2022, it won the Fotang Town plot at a similar premium rate.
3. Comparison of auction details with industry
| Contrast dimensions | Yiwu plot | National September average |
|---|---|---|
| Bidding round | 47 rounds | 8 rounds |
| Number of companies participating in the auction | 6 companies | 2.3 companies |
| Premium Rate | 40.54% | 3.2% |
| Nature of land acquisition company | Private | State-owned enterprises account for 68% |
4. Interpretation of expert views
Zhao Hangsheng, director of the Real Estate Research Center of Zhejiang University, believes: "The high premium transaction of Yiwu plots is special. First, the plot is located in a scarce residential area in the main urban area, second, the supporting plans are clear (Yiwu's first TOD complex will be built around the surrounding area), and third, the local purchasing power is strong, and the inventory of new houses is only 5.2 months, far below the safety line."
Yan Yuejin, research director of the think tank center of the E-House Research Institute, pointed out: "This case sends two signals: First,High-quality city core assets are still being chased by capital; Second,Regional deep-rooted private enterprises have begun to replace national real estate companies, becoming the new main force in the land market in third- and fourth-tier cities. ”
5. Future trend forecast
1.Regional markets continue to differentiate: It is expected that the land markets in some counties and cities in the Yangtze River Delta and Pearl River Delta will remain hot in the fourth quarter, while the failure rate of third- and fourth-tier cities in the central and western regions may further increase.
2.Adjustment of land acquisition strategies for private enterprises: Local real estate companies may participate in the auction in the form of a consortium. For example, among the six companies participating in the auction in Yiwu this time, 3 are consortiums.
3.Refined product positioning: The high premium plot will force developers to create differentiated products. The plot has a floor area ratio of 2.2, and it is expected to develop improved residential properties, forming a dislocation competition with surrounding projects on sale.
As of press time, the other three residential land plots planned to be sold in Yiwu in October have attracted 21 real estate companies to register, of which private enterprises account for 76%. This trend is worthy of continuous attention.
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