The first land auction in Beijing after the new policy was rolled out: China Resources took the plot along the Wenyu River at a cost of 8.3 billion yuan, while the bidding process for the Tuofangying plot was unexpectedly suspended!

Less than a week after the release of the new regulation on "existing home sales", Beijing has ushered in its first land auction.

On September 3, the plots of land in Shunyi Wenyuhe and Chaoyang Tuofangying were put up for auction, with a total starting price as high as 14.592 billion yuan. Whether it is the prime location, the nearly 10-billion-yuan scale, coupled with the current trend of the new policy, the two plots have received extremely high attention before the auction started.

Looking at the results first, after more than 170 rounds of bidding, China Resources defeated the Maoyuan + Jinyu Consortium with 8.2993 billion yuan and won the Shunyi Wenyuhe plot.

Location

This is another layout of China Resources in this sector. In February last year, it won the bid for Plot 2007 and other plots at the location adjacent to the east side of today's plot, and later developed it into the top-selling project in the first 8 months of this year - Beijing Runyuan.

Although the two residential lands are only separated by more than a year, the market popularity has increased significantly. Last year, for Plot 2007 and other plots, China Resources acquired the land at the base price, while the premium rate of Plot 2001 and other plots today has risen to 17.37%. The increase in land price is more intuitive. The residential floor price of Plot 2001 and other plots today is about 41,200 yuan / ㎡, which is about 6,000 yuan / ㎡ higher than that of the plot last year.

However, the development scale of the new plot is more considerable. The residential part covers an area of about 199,200 ㎡, which is larger than the project of last year. At the same time, about 3,000 ㎡ of commercial land is added, which to a certain extent leaves sufficient room for China Resources to build an upgraded product here.

From the product perspective, the new plot is almost in the same line as Beijing Runyuan - with a floor area ratio of 1.01, a height limit of 27 meters, combined with the transfer conditions prohibiting single-family villas, it is estimated that the combination of townhouses and semi-detached villas will be continued. The difference from Beijing Runyuan is that the interior of the new plot is divided into three groups by two neighborhood roads, Anyue North Road (12 meters wide) and Yuyuan South Road (20 meters wide). The future community will be more scattered while the privacy will also be higher.

Judging from the current market performance of Beijing Runyuan, the new second-phase product will most likely be another hot-selling property in the market.

Since its opening in December last year, Beijing Runyuan has obtained pre-sale permits for more than 390 units. As of today, the online signing volume has reached 353 units, with a decontamination rate of nearly 90%. The overall decontamination rate of the whole project has also reached 73%. The remaining 90 units to be licensed are basically semi-detached villa products.

With the hot sales reputation of Beijing Runyuan as the foundation, the regional market and customer groups have a certain recognition of China Resources' development capabilities. Coupled with the continuation of the product line, the new project will have its own traffic base. From this perspective, it has a high possibility of achieving hot sales and maintaining a fast sales rhythm in the future.

The Maoyuan Consortium, which competed for the land with China Resources today, also has a villa project in Houshayu - Maoyuan Yunji. It opened in June last year. Although the average price of 60,000 yuan / ㎡ is lower than the 70,000+ yuan of Beijing Runyuan, due to factors such as location, the online signing performance is not ideal. Among its 573 housing units, only 122 units have been signed online so far, with a decontamination rate of only 21.29%. Maoyuan's participation in the land bidding today clearly shows its intention to support the market. If it wins the plot, Maoyuan can link the projects in the area, the popularity of the new project can divert traffic for the Yunji project, and the two can also share resources such as customers, so as to drive the overall decontamination. Although it failed to win the new land as expected, the floor price of Maoyuan Yunji is about 26,700 yuan / ㎡, which is nearly 15,000 yuan / ㎡ lower than the 41,200 yuan / ㎡ of China Resources' new plot. This obvious price advantage may help its decontamination in subsequent sales.

Plot Location

Compared with the Shunyi Wenyuhe plot, the Tuofangying plot with a starting price of over 7.5 billion yuan actually has higher attention. However, no one expected that when the auction was about to officially start, an accident occurred - the transfer of the plot was suddenly suspended.

The suspension announcement has been released on the official website of Beijing Municipal Commission of Planning and Natural Resources, but the official has not announced the specific reason.

Official Announcement

Regarding the reason for the suspension, some media reported that three enterprises/consortia signed up for the plot before the auction, but only China Overseas New Town received the number plate on site. Some people said that individual real estate enterprises have objections to the price of this plot. There is also market rumor that the plot may be re-auctioned after price adjustment in the future.

The time for the re-transfer of the plot is not yet known, but in any case, this high-quality plot is still one of the most anticipated plots in Beijing's land auction market in the future.

In terms of location, the north side of the plot is close to the Ba River, which is a rare front-line river-view property in the Beijing market. Indigo and Taikoo Place are across the river from the plot. There are also the Tuofangying Station of Metro Line 12 and the Jiangtai Station of Metro Line 14 nearby, coupled with mature living facilities such as Jiulong Life Plaza, Wangjing Hospital of China Academy of Chinese Medical Sciences, Tuofangying Park and Jiangfu Park, the future life convenience will be very high.

The high-end living atmosphere is also obvious. The average online signing price of the two new housing projects, Beijing Chenyuan and Wanji Jiuxu, on the southeast side of the plot has exceeded 100,000 yuan / ㎡, and they are basically in the state of liquidation or final sales stage. A new residential plot won by China Overseas New Town in July is expected to enter the market with a unit price of 100,000+ yuan in the future. There are also many high-end communities such as Shangdongjun nearby.

The plot has a large volume, and the above-ground construction scale of the residential plot is about 121,300 ㎡. In addition to residences, it will also be equipped with a 50,000 ㎡ above-ground stadium and some underground commercial spaces. According to the transfer conditions, the stadium can be constructed in coordination with the adjacent planned park green space, and connected to the residential area through a corridor.

Under such a composite development mode, it is imaginable that the project will form a high-quality comprehensive living area of "residence + sports + commerce + park" in the future, and the scarce value of the plot will be further highlighted at that time.

Such a high-quality plot has been surging under the surface as early as when it was listed. On the day of listing, China Construction Zidi and Swire Properties quickly established a joint venture with the registered capital equal to the starting price of the plot, and their intention is self-evident. They are also the developer and constructor of Taikoo Place next to the plot, and it can be said that it is easy for the two to join hands to carry out commercial and residential linkage and deep cultivation in the region.

Why they didn't take the number plate today is also unpredictable. However, under the game of multiple parties, coupled with the variable of the temporary suspension of transfer, the follow-up trend of this plot has more suspense.

Today is the first auction after the new existing home sales policy, and the impact of the new policy on the auction site can be seen from the registration situation. Before the new policy, when luxury residential plots such as Jiuxianqiao and Guangqu Road were put up for auction, at least 5 real estate enterprises/consortia competed fiercely, and the scene was hot. However, for the two plots today, the number of participating real estate enterprises has been reduced to 2-3.

For real estate enterprises, capital is undoubtedly a hard threshold. Before the new policy, pre-sale can be carried out basically half a year after land acquisition, and the capital can be returned. After the new policy, pre-sale can only be carried out when the main structure is capped. The 2-3 year development cycle in between puts forward unprecedented tests on the cash flow management ability of real estate enterprises.

Taking the Shunyi Wenyuhe plot as an example, some industry insiders estimate that the starting price of this plot is 7.071 billion yuan, coupled with the capital required for commercial supporting construction, neighborhood roads and other facilities, the total capital required may be up to about 15 billion yuan. It is not difficult to see from this that the competition in Beijing's land auction market in the future will be increasingly concentrated on head central state-owned enterprises with strong capital strength.