Key facts
- Chinese state-owned developers are paying steep premiums for prime land in top-tier cities.
- This activity occurs amidst a national property slump.
- Poly Developments and Holdings Group acquired a Hangzhou parcel for 4.6 billion yuan, a 27% premium.
- Record land sales have also been observed in Shanghai and Shenzhen since April.
- Developers are seeking to replenish depleted land reserves.
Chinese state-owned developers are actively pursuing prime land in major cities, offering substantial premiums to acquire quality plots. This strategy is being employed even as the broader national property market experiences a significant downturn. In Hangzhou, Poly Developments and Holdings Group recently paid 4.6 billion yuan ($677 million) for a residential parcel, representing a 27% premium and the city's second-highest unit price this year. Similar high-value land transactions have been recorded in other key urban centers, including Shanghai and Shenzhen, since April. This surge in activity indicates a strategic effort by developers to rebuild their land reserves.