Select Language:
Chengdu, one of the largest cities in western China, generated over CNY 85 billion (approximately USD 11.7 billion) from residential land sales this year, securing its position as the fourth-ranked city in the country for land revenue.
The final land auction transactions in Chengdu wrapped up yesterday, with the city’s annual revenue from land sales increasing by 20% compared to the previous year.
During the first half of the year, Chengdu’s land market experienced a surge, frequently hitting new highs for land sale prices, according to Huang Xue, General Manager of the Sichuan branch of China Index Academy. However, the market tone softened in the latter half, with sales in prime core districts failing to break previous records. Some plots sold at little to no premium, or even at the minimum price, while others remained unsold.
For instance, in June, Guomao Real Estate faced intense competition at an auction for a parcel in the Yixinqiao neighborhood of Jinjiang district, ultimately paying CNY 35,500 (around USD 5,075) per square meter—about a 76% premium. Conversely, a second parcel in the same area auctioned in September sold for only CNY 25,100 per square meter, reflecting a 20% premium.
The heightened activity in Chengdu’s land market during the first half was partly driven by the large number of available plots in the city’s core areas, which drew bidding from financially strong developers, especially larger firms that repeatedly set new price records. Huang added that in the second half, more plots were offered in suburban areas.
Despite rising average land prices in the city center, attractive, high-quality plots in outer districts drew interest from developers at auctions, who aimed to appeal to buyers through enhanced design and construction quality, Huang explained.
Major developers with substantial resources, particularly state-owned enterprises based in the region, tended to compete for premium plots in the core districts. Meanwhile, private developers showed a preference for parcels with more predictable pricing and less competition during auctions.
Chengdu’s housing market has demonstrated remarkable resilience over the past four years, ranking first nationally in transaction volume by area. The city is increasingly adopting a tiered real estate consumption approach, emphasizing a “rent-first, then purchase” and “old-then-new” model, which bolsters stability within the local property and land markets, Huang concluded.
ChatGPT
Perplexity
Gemini AI
Grok AI
