Total land sale revenues for 40 cities monitored across China have seen a sizeable year-on-year decline for the period from January to November.
State media reports that for the first eleven months of 2018 40 Chinese cities saw a mild deceleration in YoY growth in their total land transaction area, while the YoY decline in land transfer revenues posted a modest expansion.
Average transaction prices posted their eighth consecutive month of YoY decline and land premium rates hit a new low.
Land transfer revenues for 40 Chinese cities monitored over the period from January to November 2018 totalled 2.0001 trillion yuan, for a YoY fall of 1.8%, and the second consecutive month of YoY decline.
Chen Xin (沈昕), a researcher from the Shanghai E-House Real Estate Research Institute, said that first-tier cities in China are currently implementing strict market control policies.
Total land supply and core location land supply is increasing in certain cities, and transaction areas and average transaction price are seeing gains, yet the overall land premium rate remains relatively low.
China’s second-tier cities are seeing both volume and price declines in their land markets, yet certain hot-spot urban centres in this category are also continuing to implement strict market control policies.
The land transaction area for third-tier cities saw an on-month increase in November, while average transaction prices cooled down.