Seize the opportunity to invest another 2.2 billion. Beijing Urban Construction's "Longyue" is about to take the lead.

On May 28th, the plots SS00 - 1622 - 002 and SS00 - 2501 - 002 of the shantytown renovation project at No. 43, Huangzhuang Village, Shijingshan District, Beijing entered the on - site auction. Finally, Beijing Urban Construction Xingtong Real Estate Co., Ltd. won the plots at the base price of 2.2 billion yuan, with a transaction floor price of about 33,100 yuan per square meter.

Beijing Urban Construction Xingtong Real Estate Co., Ltd. is a wholly - owned subsidiary of Beijing Urban Construction. This is the third time that Beijing Urban Construction has independently acquired land to replenish its inventory since the fourth quarter of last year.

Image source: Tianyancha

At the same time of winning the plot in Huangzhuang Village, Shijingshan, Beijing Urban Construction announced the name of this new project: Longyue Jingxu.

Judging from the official project name, the Huangzhuang Village project in Shijingshan belongs to the same product line as the recently opened new project Longyue Haixu in Changping. The Changping Longyue Haixu project achieved an impressive result of 493 online sign - ups on the opening day on May 16th. The initial sales rate was about 60%, and the online sign - up amount exceeded 2.6 billion yuan, firmly topping the list of new project sales in Beijing.

The Longyue product line is the high - end product line of Beijing Urban Construction. The first project to be launched was Longyue Tianyuan in Lugouqiao, Fengtai District (launched in 2022). However, in the Changping Longyue Haixu project, the Chinese character "Longyue" representing the product line in the project name was changed to the traditional Chinese character, and the operation strategy also changed.

The two projects separated by four years represent different understandings of the market by Beijing Urban Construction and more importantly, reflect the transformation of the product logic of Beijing Urban Construction under the leadership of the new management team.

The newly acquired Longyue Jingxu project has some similarities with the recently opened and hot - selling Longyue Haixu project. They not only belong to the same product line, but also have a short time interval (the land was acquired in October 2025) and are both located in the areas adjacent to Haidian. After the hot sales of Longyue Haixu, Beijing Urban Construction quickly won the Longyue Jingxu project in Huangzhuang Village, Shijingshan, taking advantage of the momentum to pursue victory.

Plot location, source: Beijing Municipal Planning and Natural Resources Commission

Actually, before acquiring the Shijingshan plot, Beijing Urban Construction had quietly issued a tender notice. From May 7th to 8th, Beijing Urban Construction intensively issued several tender plans with a total investment of 760 million yuan, fully launching the preliminary project to prepare for the project to be launched in the second half of this year.

Judging from a series of recent actions, Beijing Urban Construction is quietly "taking the lead".

In the past year, Beijing Urban Construction (including Urban Construction Development and Urban Construction No. 6 Construction) has won a total of 7 plots in the Beijing land market, with a total transaction amount of 17.183 billion yuan and a total planned construction area of 468,700 square meters, covering multiple areas such as Dongcheng, Shijingshan, Fengtai, Changping, Fangshan, and Miyun.

Why does Beijing Urban Construction dare to "bloom in multiple points" and acquire land on a large scale? Mainly because Beijing Urban Construction has two advantages.

First of all, Beijing Urban Construction has strong land primary development capabilities. The primary land organizer of the newly won plot in Huangzhuang Village, Shijingshan is Beijing Urban Construction Real Estate, a sister company of Urban Construction Development.

Just looking at the ring - road location, the Huangzhuang Village plot in Shijingshan is located between the West Third Ring Road and the West Fourth Ring Road, with a superior location. Although it is administratively planned in Shijingshan, it is geographically closer to Haidian, and the straight - line distance from the Yuquan Road area in Haidian is less than 2 kilometers. However, the reason why there are not many bidders for this plot is that the plot quality is average, with obvious deficiencies such as an irregular plot shape and possible significant noise from the Beijing - Kowloon Railway Line on the north side of the plot.

Actually, as early as August 2024, this plot was shown in the land supply list and entered the pre - application process. However, it failed to be officially listed for sale in the end because no one signed up.

This time, Beijing Urban Construction dared to acquire the land because it "picked up a bargain". When it was first put on the market in 2024, the starting total price was 4.243 billion yuan, the total construction area was about 84,900 square meters, the plot ratio was 2.55, and the floor price was about 50,000 yuan per square meter. When it returned to the market this time, the land transfer conditions of this plot had been significantly optimized: the starting total price was reduced to 2.2 billion yuan, the total construction area was adjusted to 72,300 square meters, a decrease of 48% and 15% respectively, and the plot ratio was also reduced to 2.15. The significant "price reduction and size reduction" not only reduced the land acquisition cost for the enterprise but also provided more flexible space for future operation.

Zhang Kai, the person in charge of land market research at the China Index Academy, analyzed that in recent years, the new supply in the Yuquan Road and Wukesong areas has been scarce, and the market is mainly composed of existing military compound housing and housing for government agencies. Only a few projects such as Poly Xirui and Haichen Yuanjing in Banbidian are on sale in the north. Therefore, this plot is expected to attract the overflowing customers from the southern part of Haidian, the improvement demand in the Wukesong area, and the local upgrading customers in Shijingshan.

In terms of price, the inventory competition in the Shougang Park area on the west side of the project has been relatively fierce in recent years. For example, the average sales price of Jingyue Chang'an in the past six months is 60,000 yuan per square meter, and that of Chang'an Yuanjing is 58,000 yuan per square meter. The average sales price of Jian Gong Xihua Tai outside the Fourth Ring Road is about 78,000 yuan per square meter and it is almost sold out. In the second - hand housing market, the large - scale community Yuanyang Shanshui in the north can be used as a direct reference for the value of the plot. As a landmark large - scale project along the West Fourth Ring Road, this project was completed in 2000. Currently, the listed average price is about 42,000 - 48,000 yuan per square meter, and the actual transaction price is about 40,000 - 45,000 yuan per square meter. Considering the price difference between the surrounding new and second - hand houses, it is expected that the price of this plot may be close to 65,000 yuan per square meter after it is launched.

The relatively low land price has left enough room for product upgrading and profit for Beijing Urban Construction.

Source: CRIC

Secondly, Beijing Urban Construction's product strength has also been continuously improving in recent years. This is also the core reason for the hot sales of its projects. In the recently hot - selling Longyue Haixu project, the utilization rate of all product units reaches 90% - 97%, and that of some corner units is as high as 99%. Compared with ordinary projects of the same area, there is 15 - 20 square meters more usable area. In addition, there are also a series of innovations in the indoor space.

According to the land transfer document of the Huangzhuang Village plot in Shijingshan, the total land area of the project is 3.66 hectares, and the planned above - ground construction area is 72,300 square meters. Among them, the residential plot 1622 - 002 covers an area of 3.15 hectares, and the above - ground building scale is 67,690 square meters. In the future, as another "Longyue" product of Beijing Urban Construction, the project will probably mainly consist of small high - rise buildings and three - bedroom units, with an average household area of about 105 - 110 square meters. It is expected that customers can enter the market with a total price of about 5 million yuan. Compared with the Wukesong area in Haidian nearby, the price advantage is obvious. Coupled with the fact that Shijingshan is more lenient in planning and approval than Haidian, it is expected that the new project of Beijing Urban Construction will attract a part of the improvement - oriented group in the southern part of Haidian.

This article is from the WeChat public account "Future Livable", author: Xiaowu Jiandawu. Republished by 36Kr with permission.