CHINA'S big developers are expanding their land reserves across the country in anticipation of a surge in the real estate market.
Poly Real Estate Group Co acquired four land parcels with a combined site area of about 700,000 square meters in Shanghai and Hangzhou in Zhejiang Province on Tuesday and Wednesday. Beijing North Star Co, together with Beijing City Development, announced yesterday it has bought a 785,198-square-meter plot in Changsha in central China's Hunan Province.
The current implementation of the so-called "bidding, listing and auction" mechanism governing public land transfers has led to fiercer competition among the country's developers and increased land costs. Those factors are prompting domestic real estate companies to enlarge their land banks at a faster pace, industry sources said.
Among the latest deals, Poly, China's largest state-owned developer, acquired three adjacent land parcels covering a total 400,000 square meters in Shanghai's suburban Baoshan District for 3.24 billion yuan (US$420.7 million), or an average 5,877 yuan per square meter in terms of gross floor area. Poly said it plans to build high-end residential properties on the sites.
Just a day after the deal, Poly secured another land plot in Hangzhou's Xiasha Township after paying 2.28 billion yuan, or an average 3,326 yuan per square meter. The 289,666-square-meter parcel is designated for commercial and residential use.
Meanwhile, Beijing North Star said yesterday that its venture with industry counterpart Beijing City Developer has agreed to purchase a parcel in Changsha for 9.2 billion yuan.