In Nanjing, where the new property market has continued to be sluggish, an unexpected sale of the second-highest-priced land has been made. According to the management of a large research institution, the high transaction price of the land does not necessarily indicate an increase in the Nanjing land market, nor does it mean that there will be significant changes in the new property market.
Nanjing, where the new housing market turnover rate has been low, has sold a TOP 2 land king.
Nanjing today auctioned three residential plots, with a starting price of 1.97 billion yuan and a final transaction price of 2.052 billion yuan. Among them, the He Xinan G11 plot was won by Ortus Construction at a price of 1.74 billion yuan after 47 rounds of bidding. The floor price was as high as 43,900 yuan/square meter.
It is worth mentioning that the floor price of the G11 plot is only second to the Hexi land king (45,200 yuan/square meter) won by Gezhouba in 2016. The G11 plot has become the second highest land king in terms of unit price in Nanjing.
A senior manager at a large research institution told reporters that the high transaction price of the plot does not mean that the Nanjing land market is heating up, let alone that major changes will occur in the new housing market.
"This is just a case. It is necessary to treat it rationally. After all, several bidding companies are local state-owned enterprises. Perhaps the companies believe that the plot has certain development space, but this only reflects the judgment of individual companies on individual plots, not a general market phenomenon." said the senior management of the property agency.
Prior to this, as a core second-tier city, Nanjing launched a "buy a house and settle down" policy to stimulate housing demand.
At the end of April this year, the Nanjing Public Security Bureau issued a notice soliciting opinions on "matters related to legal and stable residence registration". It mentioned that Nanjing will further relax the conditions for settlement. Non-Nanjing residents who have legal and stable residences in Nanjing and actually reside there can directly apply for registration.
Analysts believe that this measure proposed by Nanjing will have a driving effect: if you can obtain local household registration by buying a house in Nanjing, it is expected to stimulate many housing purchase needs.
On May 24, Nanjing held a special meeting to study the measures and key work to promote the stable and healthy development of the real estate market.
The meeting pointed out that Nanjing should exert efforts from both the supply and demand sides, coordinate the digestion of existing housing and optimize the supply of new housing, more effectively reduce inventory, expand demand, adjust structure, and improve quality; support the release of demand for improved housing, and further increase the participating main bodies of enterprises and sources of improved housing to promote the benign circulation of the regional market.
In addition, Nanjing proposed to increase the resettlement efforts for displaced residents, expand the scope of use of resettlement vouchers, shorten the transitional period of resettlement, and meet diverse resettlement needs. It is necessary to make good use of the policy of re-loaning for guaranteed housing, purchase some commercial housing at a reasonable price for use as guaranteed housing according to the principle of "purchasing according to demand", and build a diversified and multi-level housing supply system.
However, the sales situation of the Nanjing new housing market in May was not ideal.
"Second and third-tier cities such as Nanjing saw the same decline in new home sales in May, with continuing low turnover rates in the month. This is related to the problem of supply structure and the fact that customers continue to watch. The market has continued to bottom and continue the trend." said Kui Kui analysts.
According to Ke Kuir data, in May 2024, the newly-built commercial housing turnover area in Nanjing was 270,000 square meters, a decrease of 16% and 46% compared with the previous month and the same period last year, respectively, and an increase of 54% in the monthly average turnover volume in the first quarter. From January to May this year, the turnover area of newly-built commercial housing in Nanjing was 1.12 million square meters, a year-on-year decrease of 61%.
In terms of turnover, data shows that the new housing turnover rate in Nanjing in May this year was only 7%, a decrease of 2 percentage points from the 9% turnover rate in April, a decrease of 1 percentage point from the 8% turnover rate in the first quarter of this year, and a decrease of 19 percentage points from the 26% turnover rate in May last year.
However, in contrast to the continuing adjustment of the new housing market, the turnover of the second-hand housing market in Nanjing has shown signs of improvement.
According to Ke Kuir monitoring data, in May 2024, the turnover of second-hand housing in Nanjing was 1.042 million square meters, an increase of 13% and 29% compared with the previous month and the same period last year, respectively; from January to May this year, the turnover of second-hand housing in Nanjing was 3.865 million square meters, a year-on-year decrease of 11%.
Industry insiders believe that the Nanjing market is still in the process of adjustment. The coldness of the "bread" market and the hotness of individual plots today have formed a certain contrast.
"Under the current continuous adjustment of the market, how the fate of high-priced land will be, is worth paying attention to." added the aforementioned senior management of the property agency.