The revenues from land sales in 50 major cities across China have posted a sizeable increase in the first half of 2018.
Data from Centaline Property indicates that the total land transfer property sum for 50 major cities in the first half of 2018 was 1.79854 trillion yuan, for an increase of 39.6% compared to the figure of 1.28749 trillion yuan for the same period in 2017.
12 cities saw land sales in excess of 50 billion yuan, including Beijing, Chengdu, Chongqing, Foshan, Guangzhou, Hangzhou, Jinan, Ningbo, Suzhou, Tianjin, Wuhan,and Zhengzhou.
The Zhejiang province capital of Hangzhou saw the largest land sale revenue amount at 148.53 billion yuan, for a YoY increase of 99%, while in Chongqing the figure was 92 billion yuan, for an increase of 24%, and in Suzhou it was 76.59 billion yuan, for a rise of 20%.
Centaline Property chief analyst Zhang Dawei (张大伟) said that while the controls imposed upon local land markets have had an impact, he expects transaction sums to remain high in major Chinese cities in 2018.
“The land markets of third and fourth-tier cities have been especially active,” said Zhang. “In 2018 a large number of real estate companies are entering third and fourth-tier cities to grab land, driving land sales sums to historic highs in hot spot cities.”
Zhang points out that 38 Chinese third and fourth-tier cities saw land sales revenues in excess of 10 billion yuan in the first half, including Changzhou, Foshan, Huzhou,, Jiaxing, Nantong and Xuzhou.