BUSINESS

Beijing Land Sales Plunge 66% as Developers Chase ‘Safe’ Prime Plots

Published: Jun. 25, 2026 3:00 a.m. GMT+8

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In the first half of the year, Beijing sold 21 residential plots for 34 billion yuan ($5 billion), according to data released by the China Index Academy. Photo: VCG

Beijing’s residential land sales revenue plunged 66% in the first half of 2026, though a handful of prime plots still sparked fierce bidding among developers.

The divergence underscores a national shift: Battered by a prolonged industry slump, property developers are abandoning aggressive expansion to compete for a shrinking pool of safe, high-quality parcels in core cities.

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Beijing residential land sales revenue plunged 66% in H1 2026; total planned floor area dropped 48% and average premium fell to 3.55%.
Despite overall decline, prime plots in core areas sparked fierce bidding; a Tongzhou plot sold at a 20.95% premium after 173 rounds.
Nationwide, major developers’ land spending fell 43.9% in first five months, with selective appetite only for high-certainty projects.

AI generated, for reference only

China Merchants Shekou Industrial Zone Holdings Co. Ltd.: China Merchants Shekou Industrial Zone Holdings Co. Ltd. secured a residential plot in Beijing’s Tongzhou district for 1 billion yuan after 173 rounds of bidding. The 20.95% premium was the highest for a residential plot in Beijing so far in 2026, reflecting intense competition for prime parcels.

Poly Developments and Holdings Group Co. Ltd.: In May 2026, Poly Developments and Holdings Group won a residential parcel in Beijing's Fengtai district for 4.2 billion yuan ($580 million) at a 15.4% premium after 151 bidding rounds. This occurred amid a national decline in land sales, with developers focusing on high-quality plots in core cities.

CRIC: According to the article, CRIC is a real estate consultancy that reported land acquisition spending by 100 major developers fell 43.9% year-on-year to 270.8 billion yuan in the first five months of 2026, hovering at a five-year low.

AI generated, for reference only