Land Auction Scenario After the New Policy is Implemented: Shanghai's 10th Batch of Land Auctions Garnered 15.969 Billion Yuan
The last few days of September witnessed an exceptionally active property market in Shanghai.
On September 29, the 10th batch of land auctions in Shanghai in 2026 concluded, with a total transaction value of 15.969 billion yuan for four plots of land.
Among them, the two plots located at Wujiaochang in Yangpu and Gumei in Minhang went through 109 and 177 rounds of bidding respectively, with premium rates of 21.46% and 24.44% respectively; the plots at North Bund in Hongkou and Wusong in Baoshan were both sold at the reserve price, presenting two completely different market performances in the same land transfer event.
Just one day before the land auction, four municipal departments in Shanghai jointly issued the Implementation Opinions on the Reform of Commercial Housing Sales System, with arrangements including higher pre-sale thresholds, stricter capital supervision, and installment payment of land premiums taking effect simultaneously.
The new policy comes at the end of the "Golden September" sales peak. Following the implementation of the "Eight Shanghai Property Policies" in August, the average daily transaction volume of new homes in Shanghai has increased by nearly 10% compared with the previous period, and the number of second-hand housing viewings is also on the rise.
The recovering demand for improved housing replacement provides fundamental support for the fierce competition for high-quality residential land in the land auction; the expectation of reduced new home supply further strengthens the willingness of real estate enterprises to acquire land to replenish their land reserves, boosting the popularity of this land auction.
In terms of the annual land supply rhythm, Shanghai plans to supply 275 to 385 hectares of commercial residential land in 2026, about 100 hectares less than in 2025, representing a decrease of 23.3%. Against the backdrop of continuous contraction on the supply side, high-quality residential land in core locations has become increasingly scarce.
Two Extreme Contrasting Market Performances
The competition for the Gumei plot in Minhang District was the most intense among the four plots, with up to 177 rounds of bidding. Located in the North Gumei Community, this plot consists of the 113-07 residential plot and the 113-08 cultural and sports plot, adjacent to the Donglan Road Station of Metro Line 12, and one stop east is the Hongmei Road Station.
The plot is bounded by the green belt of Lianhua Road to the east, the green belt of Donglan Road to the south, the green belt of Wanyuan Road to the west, and the green belt of Chuanbang to the north. The transfer area of the residential part is 45,690.06 square meters, with a floor area ratio of 2.2 and a maximum building height of 60 meters; the transfer area of the cultural and sports part is 9,000.08 square meters, with a floor area ratio of 1.8, and the starting price of the plot is 5.156 billion yuan.
Three consortia participated in the on-site bidding: the consortium of China Construction Second Bureau and Yuexiu, the consortium of China Merchants Shekou, Nanshan and Binjiang, and the consortium of C&D and Xiangyu.
After 177 rounds of bidding, the consortium of China Merchants Shekou, Nanshan and Binjiang won the bid with 6.416 billion yuan, with a premium rate of 24.44% and a transaction floor price of 54,971 yuan per square meter. The condition of a floor area ratio of 2.2 is a relatively low-density and scarce target in Minhang District, and the product positioning is most likely to focus on small high-rise buildings and townhouses.
It is worth noting that the supply of new homes in the Gumei sub-district of Minhang, Shanghai, has been out of stock for several years. The main reason lies in the supply side -- the sub-district was developed early, and the available residential land for transfer is scarce, and the new supply in recent years mainly relies on sporadic release from stock renewal.
It is reported that the C&D Jingyuan project on the west side of the plot was launched for sale twice in 2023, with an average price of about 89,100 yuan per square meter, and there has been no new home supply in the sub-district since then.
At the same time, the surrounding areas are distributed with industrial parks such as Caohejing Development Zone, key schools such as Qibao High School and Wenlai High School, and commercial supporting facilities such as Hongxianghui and Xingbao Shopping Center. The accumulated improvement demand that has been backlogged for many years lacks effective release channels, which may be one of the reasons why three real estate enterprises bid for more than 100 rounds.
On the morning of September 29, the competition for the Wujiaochang plot in Yangpu was also fierce. The plot, numbered 020-02, is located in the Jiangwan Historical and Cultural Features Area. It is bounded by the planned Minjing Road to the east, the planned Minding Road to the south, Zhayin Road to the west, and the planned Minfu Road to the north. The transfer area is 18,557.31 square meters, the floor area ratio is 2.4, the gross floor area for calculation of plot ratio is 44,537.54 square meters, and the maximum building height is 60 meters (24 meters for part of the area).
The starting price of the plot is 2.405 billion yuan, and a total of 5 bidders participated in the on-site bidding, including Lianfa, Yuexiu, China Construction Yipin, Greentown, and the China Merchants Shekou-Nanshan consortium.
At the initial stage, Lianfa and China Construction Yipin made frequent bids and took the initiative; the China Merchants-backed consortium made efforts in the later stage. After 109 rounds of bidding, the consortium of China Merchants Shekou and Nanshan won the bid with 2.92 billion yuan, with a premium rate of 21.46% and a transaction floor price of 65,574 yuan per square meter.
In terms of location, this plot is located in the transitional zone between Wujiaochang and Xinjiangwan City, adjacent to Sanmen Road Station of Metro Line 10, connected to mature sub-districts such as Wujiaochang and Xinjiangwan City, and urban complexes such as Yunji Shangpu as well as corporate headquarters of ByteDance, Bilibili, and Paper Games are also clustered nearby.
The planning positioning of the Jiangwan Historical and Cultural Features Area emphasizes the balance between the authenticity of the historical features and functional sustainability. The 020-02 neighborhood where the plot is located was previously adjusted from commercial and office property to residential land. This change of "commercial to residential" itself reflects the adjustment direction of the regional land use structure.
However, the two plots of North Bund in Hongkou and Wusong in Baoshan were both sold at the reserve price.
Guomao Real Estate, in cooperation with the North Bund Group, acquired the hk285-06 plot at North Bund in Hongkou with 5.418 billion yuan, with a premium rate of 0 and a comprehensive floor price of 42,612 yuan per square meter.
The plot covers an area of about 17,900 square meters, with a floor area ratio of 7.1 and a maximum building height of 198 meters. It is only one street away from the Sinar Mas Plaza, and the 480-meter-high North Bund Center under construction is on its east side.
It is worth noting that this plot is a mixed land for scientific research, design and ordinary commercial housing, with residential proportion not exceeding 37.5% and scientific research proportion not less than 62.5%. The complex business format and high total price put forward high requirements for the capital strength and comprehensive operation capability of development enterprises, which is also one of the reasons for the low bidding popularity.
In addition, the Wusong plot in Baoshan was won by Xiangyu at the reserve price of 1.2145 billion yuan, with a transaction floor price of about 27,000 yuan per square meter. The plot, numbered C7-a-25, is located in the Paotai Park Community, covering an area of about 30,000 square meters, with a floor area ratio of only 1.5, a maximum building height of 36 meters, and is designated for ordinary commercial housing. The plot is close to Shanghai Wusong Paotaiwan National Wetland Park, but only one real estate enterprise participated in the registration stage.
The low-density condition is suitable for developing townhouse-type products, but the customer group coverage of the Wusong sub-district is limited, and the sales pace remains to be observed. Under the policy environment of higher pre-sale thresholds and longer capital return cycles, the development difficulty and capital matching pressure of such plots have further increased, making real estate enterprises tend to be more conservative in land acquisition.
New Policy Takes Effect
Just one day before the conclusion of this land auction, the new property market policy in Shanghai was officially released.
On September 28, four departments of Shanghai, including the Municipal Commission of Housing and Urban-rural Development, the Municipal Housing Administration Bureau, the Municipal Planning and Natural Resources Bureau, and the Shanghai Financial Regulatory Bureau, jointly issued the *Implementation Opinions on Implementing the "Notice on Improving the Commercial Housing Sales System"*, making Shanghai the second city to introduce systematic implementation rules after Beijing, following the release of three central-level reform documents on the real estate industry on August 28.
This implementation opinion covers six aspects: pre-sale management, completed housing sales, lead bank system, financing support, land supply management and quality supervision.
The most direct change affecting the investment decisions of real estate enterprises is the substantial increase in the pre-sale threshold: for commercial housing projects with new transfer announcements released after August 28, 2026, the main structure of the single building shall be fully capped when applying for pre-sale. At the same time, pre-sale funds are subject to full-process and full-amount supervision, and the fund supervision can only be lifted after the project passes the comprehensive completion acceptance.
The issuance time point of individual housing mortgage loans has also been adjusted. The new regulations make it clear that mortgage loans must be issued after the completion filing, while in previous practice, the principle of "issuing loans once the main structure is capped" was generally followed, and loans for some projects were issued even earlier.
In contrast, the fund issuance and return cycle is delayed compared with the past, and supporting policies from various regions need to be strengthened in the follow-up. For real estate enterprises, this means that in the whole chain from land acquisition to sales and fund return, the cash flow recovery node is systematically pushed backward.
However, the policy leaves transitional space for projects at different stages.
Shanghai divides the ongoing projects into three categories. The third category refers to projects whose transfer announcements have been released before August 28, whose land use rights are obtained after August 28, and which are launched for sale before the end of 2027. Their pre-sale conditions can be implemented in accordance with the original policies, but the pre-sale fund supervision must follow the new regulations.
The four plots of land transferred in the 10th batch of Shanghai's land auction fall exactly within this transitional window. Their transfer announcements were released before August 28, and the land acquisition date is September 29, which meets the requirement of this transitional policy. They can continue to apply the original pre-sale conditions, but the fund supervision will be implemented in accordance with the new regulations.
In terms of reducing the capital pressure of real estate enterprises in land acquisition, the new policy also puts forward corresponding arrangements.
Land premiums are allowed to be paid in installments without interest. Shanghai adopts the "1+1" mode: the down payment shall be paid within 30 natural days from the date of signing the transfer contract, with the proportion not less than 50% of the total price, and the remaining balance can be paid within one year; after decision-making in accordance with the prescribed procedures to adapt to the needs of the market and projects, the payment period can be extended for another year.
Compared with Beijing, which directly arranges the remaining balance to be paid off within two years, Shanghai's nominal payment period is shorter, but it retains flexible space for extension.
This article is from the WeChat official account "The View", author: The View New Media, and is published by 36Kr with authorization.