In the first quarter, land transfer fees for residential properties in 300 cities totaled 2154 billion yuan, with an average premium rate of 5%.

Zhongzhi Research Institute’s data shows that in the first quarter (up to March 28), land transfer fees for residential land in 300 cities totaled 215.4 billion yuan, with an average premium rate of 5%. Aside from core plots in Guangzhou, Shanghai, Hangzhou, and other areas fetching high premiums through bidding, many cities maintained a calm land auction sentiment.

Data indicates that in the first quarter (up to March 28), the planned construction area for residential land in 300 cities was 64.72 million square meters, down 23.8% year-on-year; the transaction area was 58.93 million square meters, down 25.9% year-on-year; land transfer fees amounted to 215.4 billion yuan, down 45.7% year-on-year; and the average premium rate was 5.0%.

Centaline Research Institute states that in the first quarter, local governments’ land supply pace overall slowed compared to the same period last year. The land transfer strategy continued to follow the “reduce volume and improve quality” approach, with both the launch and transaction scales of residential land in 300 cities decreasing by over 20% year-on-year.

Looking at different tiers of cities, data shows that in the first quarter (up to March 28), the land market in first-tier cities remained relatively stable, with supply maintaining a certain scale. The transaction area decreased by just over 10% year-on-year, but due to a high base last year when Shanghai and Beijing had many high-quality plots, the land transfer fees dropped nearly 50% year-on-year. In second-tier cities, except for Hangzhou and Chengdu, most cities saw lower launch and transaction scales for residential land, with land transfer fees decreasing by over 60%. The land market in third- and fourth-tier cities continued its adjustment trend, with launch and transaction indicators declining by nearly 20% year-on-year.

Regarding land auction enthusiasm, Centaline Research Institute states that property companies continue to focus their funds on high-certainty, high-quality assets. Core cities’ premium levels for quality plots remain high, with Guangzhou’s Ma Chang plot, totaling 23.6 billion yuan, leading the first quarter’s land transfer fees nationwide.

Specifically, on February 25, Guangzhou’s Ma Chang plot was auctioned after 9 hours and 243 bidding rounds, with Yuexiu Property acquiring it for 23.6B yuan, a premium rate of 26.6%. The total transaction price ranked second in Guangzhou history and fifth nationwide, with residential floor prices around 85k yuan per square meter, setting a new record for Guangzhou residential floor prices. On March 13, in Qingpu District, Shanghai, a residential plot in Xujing Town was won by Greentown with a 6.6% premium rate, totaling 2.67 billion yuan, with a floor price of 31,972 yuan per square meter. This was the only premium transaction in that batch, highlighting its significant location advantage. On March 6, in Chengdong New Town, Shangcheng District, Hangzhou, a residential plot was auctioned after 109 rounds, with Poly acquiring it for 3.22 billion yuan, a premium rate of 51%, and a floor price of 44,985 yuan per square meter.

However, Centaline Research Institute points out that aside from core plots in Guangzhou, Shanghai, and Hangzhou fetching high premiums, most cities’ land markets remain subdued, with plots in Qingdao, Beijing, Fuzhou, Wuhan, and Tianjin sold at bottom prices. This is partly due to slowed land supply and fewer high-quality plots in core areas, as well as property companies’ ongoing funding pressures, leading them to focus on high-certainty, core city projects and remain cautious about non-core areas.

Against the backdrop of slowed supply, the overall premium rate in 300 cities remains low. Data shows that in the first quarter (up to March 28), the average premium rate for residential land in 300 cities was 5.0%. In January, the market was relatively quiet; in February, driven by high-premium plots like Guangzhou’s Ma Chang plot, the premium rate rose to 10.7%; by March 28, the average premium rate was 3.3%.

Regarding land-buying enterprises, central state-owned enterprises (SOEs) remain the main players. Data indicates that in the first quarter (up to March 28), among the total land acquisitions in 22 cities, SOEs accounted for 58%, with Beijing, Shanghai, Guangzhou, and Xiamen SOEs each exceeding 60%. Local state-owned assets made up 26%, down 5 percentage points from the full year of 2025; private enterprises accounted for 11%, with relatively weaker land acquisition activity, though some local private firms in cities like Chengdu and Tianjin showed more active deployment.

Centaline Research Institute believes that overall, the land market in the first quarter continued its “shrinking volume and improving quality” trend and exhibited “point-specific high activity.” The divergence among cities persisted. In the second quarter, core areas of first-tier and strong second-tier cities are expected to see more high-quality residential land entering the market, supported by advantageous locations and complete amenities, helping to maintain market enthusiasm and stabilize expectations. Meanwhile, land markets in third- and fourth-tier cities and suburban areas of first- and second-tier cities will still face pressure. A full market recovery depends on a substantial rebound in commercial housing sales and continued restoration of property developers’ investment confidence.