10月22日, Hangzhou saw one piece of residential land in the core area of Jiangwan New City put up for auction. This plot triggered a fierce competition among strong real estate companies including Greentown, Binjiang, CR Land, Poly, China Overseas, and Yuexiu. After 77 rounds of bidding, Greentown finally won the land at a price of 3.42 billion yuan, with a 28.5% premium rate, and a transaction floor price of 50,717 yuan per square meter.

Hangzhou's previous record for the highest unit land price was set in 2016 by the Fengqi Chaoming plot, which was also won by Greentown.

According to public information, Greentown won the Fengqi Chaoming plot in 2016 for a price of 3.735 billion yuan, with a premium rate of 109.38%, equivalent to a floor price of 45,368 yuan per square meter.

Gao Yuansheng, Executive Deputy General Manager of the China Index Research Institute's East China Region, pointed out that the Jiangwan New City plot has broken the record of Fengqi Chaoming plot's unit price, thereby becoming Hangzhou's new highest unit land price.

Industry insiders believe that the 8-year record of the highest unit land price in Hangzhou being broken and the floor price exceeding 50,000 yuan per square meter are not only due to the inherent advantages of the land parcel, but also related to the boost from policy support, positive market expectations, and other factors.

Gao Yuansheng stated that at the macro level, since September 24th, the real estate market has continuously received policy support such as reduced down payments, lower interest rates, relaxed purchase restrictions, and financing white lists. The frequent positive statements from the central government have stabilized the property market, bringing significant improvements to market expectations.

Finance Associated Press report on October 22nd (Reporter Wang Haichun) Hangzhou's 8-year record of floor prices has been broken.

"Specifically at the project level, the site is located in the core sector of Jiangwan New City, Hangzhou, with great development potential. The sector has low inventory, limited supply, and high market demand. From a sales perspective, the future sales of the project are guaranteed. Due to its promising future, the site has sparked intense competition. The price difference between the land and real estate properties has been compressed to 16,783 yuan per square meter," Gao Yuansheng added.

Analysts believe that Greentown has once again set a new record for land transaction price in Hangzhou after 8 years. This reflects that even during market fluctuations, high-quality projects in core areas will still attract fierce competition from strong real estate companies. Such plots in the land market will therefore show positive performance.

In terms of market transactions, there has been a significant increase in the volume of new home sales in Hangzhou in October this year.

According to data obtained today from Zhongzheng Institute, from October 1st to October 21st, 2024, there were 2,608 transactions of new homes in Hangzhou, with a total area of 0.334 million square meters. This represents a 24.1% and 28.5% increase month-on-month, and a significant 86.8% and 77.7% increase year-on-year.

Looking at the second-hand housing market, according to Zhongzheng Institute data, there were 5,532 transactions of second-hand homes in Hangzhou in September, with a total area of 0.539 million square meters. This indicates a decrease of 12.2% and 12.5% month-on-month, but a notable 31.2% and 30.2% increase year-on-year.

"The stabilization of transaction volumes in hot cities for new and second-hand homes has also increased the activity in the land market. This clearly indicates that the stabilization of the housing market will have a significant boosting effect on the land market," said Yan Yuejin, Deputy Director of E-House Research Institute.

Gao Yuansheng introduced that Hangzhou has now fully lifted the price limit on new homes. Among the 3 plots that will be auctioned on October 29th in Hangzhou, the North Market plot will be the last one subject to price restrictions. Of the 5 plots listed in October, land auctions may still maintain high heat; among them, the Olympic Sports Park plot, Angel No. 3 plot, and Zhijiang plot may exceed the highest regional land price, even with a high chance of becoming regional price kings.

It is worth noting that before winning the title of land price king in Hangzhou, Greentown also won the title of national land price king in the fourth round of land auctions in Shanghai this year.

On August 7th, after 72 rounds of intense bidding with a consortium of China Merchants, Xuhui City Investment, China Resources, and 7 other bidders reaching the land price cap, Greentown won the land parcel in Xuhui District Xietu Street at a price of 4.805 billion yuan during the lottery session, with a transaction floor price as high as 131,045 yuan per square meter. This parcel broke the record for the most expensive land in the country, becoming the newly-crowned highest unit price land king nationwide.