Shenzhen Land Deals Defy Market Gloom With Bidding Wars for Core Plots
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Shenzhen’s land market is ending the year with a dramatic surge as developers wage bidding wars over prime plots, even as the broader property sector remains in decline.
On Wednesday, a subsidiary of state-owned China Railway Construction Real Estate Group Co. Ltd. secured a small residential plot in Futian for 792 million yuan ($112 million), following more than 140 rounds of bidding. The final price was 65% above the opening bid of 480 million yuan, the third-highest premium seen in Shenzhen this year.
The win followed a separate high-profile transaction just two days earlier, when a unit of China Overseas Land & Investment Ltd. bought land in the city’s sought-after business district Shenzhen Bay Super Headquarters Base for 3.19 billion yuan, reflecting a 42.5% premium.
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- Shenzhen’s prime land is seeing fierce bidding, with some plots selling 42.5%-65% above opening prices, despite a weak overall property market.
- Developers prefer central locations like Futian and Shenzhen Bay, while interest in outer districts remains low, contributing to market polarization.
- In 2024, Shenzhen sold 12 residential plots, double that of 2023, but total land auction revenue fell 16% to 29.1 billion yuan, a 70% drop from 2021’s peak.
- China Railway Construction Real Estate Group Co. Ltd.
- China Railway Construction Real Estate Group Co. Ltd. (中国铁建房地产集团有限公司) is a state-owned enterprise. A subsidiary recently secured a small residential plot in Futian, Shenzhen, for 792 million yuan ($112 million) after 140 rounds of bidding, representing a 65% premium. This purchase marks the third-highest premium seen in Shenzhen this year.
- China Overseas Land & Investment Ltd.
- China Overseas Land & Investment Ltd. (中国海外发展有限公司) is mentioned in the article as a developer that bought land in Shenzhen's business district. Specifically, a unit of the company acquired land in the Shenzhen Bay Super Headquarters Base for 3.19 billion yuan, reflecting a 42.5% premium. This purchase highlights developers' aggressive pursuit of prime land in key urban centers.
- Longfor Group Holdings Ltd.
- Longfor Group Holdings Ltd. acquired a plot in Shenzhen's Guangming district for 766 million yuan. This acquisition was made at its base price, distinguishing it from other developers who engaged in bidding wars for prime plots. This indicates the company's cautious approach amidst a polarized real estate market.
- Centaline Property
- Centaline Property data indicates that Shenzhen's total land auction revenue for 2024 fell by 16% year-on-year to 29.1 billion yuan. This figure represents more than a 70% drop from the 2021 peak of 98.2 billion yuan, despite twice as many residential plots being sold in 2024 compared to 2023.
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