Land Sales Slashed by More Than a Third in First Half of 2024 as Real Estate Slump Bites
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Plummeting home sales and a reluctance by developers to start new projects have led to a 35% drop in land sales in China in the first half of this year, according to a report by Huatai Securities.
Land transaction dropped by more than a third in terms of value and 29% in terms of area in the first six months, the report said.
Among all types of land listed for sale, land for residential development usually commands the highest unit price. The report showed that the area of residential land sold in China for the first six months was around 180 million square meters, down 35% year-on-year, with value at about 669.4 billion yuan, a 42% decrease year-on-year.
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- Home sales decline and developer hesitance reduced land sales in China by 35% in the first half of the year.
- Revenue from land sales fell sharply, impacting local government finances, leading to increased reliance on transfer payments from the central government.
- State-owned enterprises dominated land acquisitions, comprising 80% of purchases, as top developers avoided buying land in 12 provinces.
- 2023：
- Central transfer payments to local governments exceeded 10 trillion yuan, accounting for 36.1% of the general public budget, the highest proportion since 2010.
- the first half of 2024：
- State-owned enterprises accounted for 80% of land acquisitions, up from 76% in the first half of 2023.
- the first half of 2024：
- None of China's top 100 developers bought land in 12 provinces: Jiangxi, Xinjiang, Guangxi, Yunnan, Jilin, Qinghai, Ningxia, Gansu, Guizhou, Hebei, Heilongjiang, and Inner Mongolia.
- the first six months of 2024：
- Land transaction dropped by more than a third in terms of value and 29% in terms of area.
- the first six months of 2024：
- The area of residential land sold was around 180 million square meters, down 35% year-on-year, with value at about 669.4 billion yuan, a 42% decrease year-on-year.
- the first six months of 2024：
- Transactions of residential land accounted for 64% of total land sales, the lowest level since 2011.
- July 6, 2024：
- A report by Minsheng Securities analyzed land auctions in 29 provinces during the first half of the year and found significant declines in land revenue.
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