Report: in the first two months, the transaction area of residential land in 100 cities fell nearly 20percent and recovered in March

category:Finance
 Report: in the first two months, the transaction area of residential land in 100 cities fell nearly 20percent and recovered in March


Data source: local land transaction center, CRIC, Yiju Research Institute

The trading area of residential land in 100 cities fell nearly 20% in the first two months

According to the report, from January to February, the transaction area of residential land in 100 cities nationwide was 65.42 million square meters, down 18.7% year on year.

Affected by the novel coronavirus pneumonia epidemic, economic activities in various parts of the city have been suspended, and the market for some local cities has also begun to close. This has led to the impact of land transactions, which ultimately affected the scale and growth rate of the previous two months. In addition, even in February, part of the 100 cities in the country still had the phenomenon of land grabbing.

Yan Yuejin, research director of the think tank center of Yiju Research Institute, told China New Zealand Jingwei client that from the land market in January February this year, there is indeed a trend of cooling down, for many reasons. Including the suspension of land supply, the closure of the auction market and so on, will objectively restrict land transactions. In addition, the housing sales data of the real estate enterprises in February is poor, and the primary task of their operation is to actively promote and collect funds, and the actions related to land acquisition will naturally tend to be conservative.

Data source: local land transaction center, CRIC, Yiju Research Institute

Residential land transaction area in second tier cities reduced by nearly 40%

According to the report, from the perspective of urban structure, from January to February, the transaction area of residential land in four first tier cities was 5.77 million square meters, a year-on-year decrease of 1.7%.

The area of residential land in 32 second tier cities was 28.93 million square meters, a year-on-year decrease of 37.1%.

The area of residential land in 64 third and fourth tier cities was 30.72 million square meters, up 7.4% year on year.

Yan Yuejin believes that there is a possibility of a rebound and a small recovery in the land market in March. The recovery of such land market is related to many factors. First, in the near future, the financing opportunities of real estate enterprises have increased greatly, and the capital has improved, which will affect the land acquisition of real estate enterprises. Second, the quality of land supply is relatively good. Many real estate enterprises are willing to take the land, which is promising for the development of specific plots. Third, local governments actively provide guarantee and services in land supply and transaction, including increasing land plot promotion, adjusting and optimizing land plot development requirements, etc., which reduces the concerns of real estate enterprises in land acquisition. Yan added that the key to the sustainable recovery of such local auction market is the housing sales market. If the housing sales market is difficult to get out of the trough in the short term, then the local auction market will also face various kinds of resistance and pressure. Source: Zhongxin Jingwei editor in charge: Yang bin_nf4368

Yan Yuejin believes that there is a possibility of a rebound and a small recovery in the land market in March. The recovery of such land market is related to many factors. First, in the near future, the financing opportunities of real estate enterprises have increased greatly, and the capital has improved, which will affect the land acquisition of real estate enterprises. Second, the quality of land supply is relatively good. Many real estate enterprises are willing to take the land, which is promising for the development of specific plots. Third, local governments actively provide guarantee and services in land supply and transaction, including increasing land plot promotion, adjusting and optimizing land plot development requirements, etc., which reduces the concerns of real estate enterprises in land acquisition.

Yan added that the key to the sustainable recovery of such local auction market is the housing sales market. If the housing sales market is difficult to get out of the trough in the short term, then the local auction market will also face various kinds of resistance and pressure.