Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

China developers are buying land at up to a 20% premium – dipping a toe back in the market

February 24, 2025 at 02:58AM
China’s state-backed developers are ramping up land acquisitions at a premium, following government easing of home price restrictions to revive the struggling property market.

So far in 2025, 37% of land deals have been sold at 20% or more above asking price, compared to 14% in 2024 and just 4.6% in 2023, according to China Index Academy.

State-owned firms, including China Resources Land, China Overseas Land & Investment, and Poly Developments, were involved in seven of the ten biggest transactions.

While home prices and sales remain weak, the renewed land-buying signals growing confidence in a long-term recovery. However, land sales volumes remain below pre-crisis levels, with most transactions involving smaller parcels.

Local governments, struggling with falling land sale revenues, have relaxed restrictions to attract buyers. Many cities scrapped price caps on new homes last year, allowing developers greater profit margins. Beijing lifted home price limits for the first time in three years in November, while Shanghai and Hangzhou followed with similar policies.

Despite lingering market uncertainty, state-owned developers are leading the way, encouraged by government pledges to stabilize the real estate sector. With favorable policy shifts and renewed competition for prime land, China’s property market is showing early signs of stabilization.

**

Info comes via Bloomberg reports, gated.

This article was written by Eamonn Sheridan at www.forexlive.com.

China developers are buying land at up to a 20% premium – dipping a toe back in the market