The turnover declined but price rose in the national land market during August, with land price per unit floor area setting a historic high. Recently, the average land price per unit floor area of 302 cities greatly increases by 46 percent month to month to 1,591 yuan per square meter in August, according to data from research department at Tospur Consulting. The land price of the first tier cities have already doubled based on growth rate year on year.
Transactions for all types of 5,004 land lots have been carried out in 302 cities nationwide in that month, with the area turnover of 133,720,000 square meters, and down by 16 percent month to month and 17 percent year on year respectively, the said data also shows. Especially, there were transactions for 1,395 residential land lots, with area of 43.02 million square meters, up 1 percent month to month and down 5 percent year on year; 1,295 land lots for commercial utilization with area of 18.37 million square meters, down by 11 percent month to month and 23 percent year on year.
Among the first tier cities, such as Beijing, Shanghai, Guangzhou and Shenzhen, high land prices frequently shown in Shanghai in August drives land price of the first tier cities high to 34,600 yuan per square meters. Transactions of 12 residential land lots in these cities were carried out in August with 480,000 square meters, 5 lots more than last month, with area turnover up 22 percent month to month and 41 percent year on year. The land price per unit floor area was at a high level of 34,610 yuan per square meters for the turnover, which has straightly soared for four months, up by 14 percent month to month and 1.44 times year on year, setting a new high.
Constant rise in both turnover and price for months makes the market almost out of control, and it is not rare to see higher land price than housing one in the second tier cities, like “flour is more expensive than bread”, Xu Zhijing, manager of the said department at Tospur Consulting, pointed out. Although many cities have taken moves to control the real estate market in the first half year, such as Hefei, Suzhou and Nanjing, these policies were mostly “moderate”, which have not substantially restricted the speculative demands for investment, or played a role in limiting overheat housing market and over-fast rising price. The land price rises all the way, with housing price also rapidly soaring.
Translated by Jelly Yi
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