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The first land auction in Hangzhou, located in China’s eastern Zhejiang province, for the Year of the Horse, generated over 3.2 billion CNY (approximately 449 million USD) in total sales revenue. After 109 bidding rounds involving 12 real estate developers, the land was sold at approximately 51% above the starting bid to a state-owned property firm. The minimum bid was set at 45,000 CNY (about 6,260 USD) per square meter.
Situated near Xinfeng Station on Metro Line 4 and Hangzhou East Railway Station, the parcel is roughly four kilometers from Wulin Square, one of the city’s main commercial hubs. Initially intended for commercial and office development, the site was reclassified for residential use in April of the previous year. Changes to its zoning included reducing the plot ratio from 3 to 2.2 and increasing green space to 35%, making it part of Hangzhou’s pilot projects aimed at enhancing residential quality under a nationwide initiative.
The land offers picturesque views of the Beijing-Hangzhou Grand Canal and boasts rich ecological features, according to Gao Yuansheng, deputy general manager at China Index Holdings’ East China branch. Its proximity to public transportation ensures easy daily commutes, and a neighboring development launched last September has sold strongly, demonstrating the area’s attractiveness to homebuyers.
The vigorous activity in Hangzhou’s real estate market following the Lunar New Year, highlighted by the land auction’s premium, signals that prime land in major cities continues to appeal strongly to leading developers, Gao remarked.
In recent years, Hangzhou has been a strategic area for property developers, including Poly Development, which currently has six projects across the city, with three launched after October last year.
Furthermore, on March 6, the city announced plans to auction three new residential land plots with a combined starting value of 4.5 billion CNY on April 8. Market observers will be watching these upcoming auctions to see if the momentum persists.
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