CRIC Real Estate reports that land acquisition volume among 100 typical sample enterprises continued to decline year-on-year from January to May 2026.
The total value, expenditure, and construction area acquired were 547.63 billion yuan, 270.75 billion yuan, and 32.887 million square meters, respectively.
Driven by "high heat" in land auctions in core cities like Shanghai, Shenzhen, and Hangzhou, the acquisition intensity in the first five months showed a significant rebound compared to January-April, though an overall cautious stance persists.
State-owned and state-controlled enterprises remain the main force in the land market, with the top ten firms by spending accounting for over 50% of the total among the 100 typical enterprises.
Land Auction Activity Remains Above Q4 2025 Average
In May, the transaction volume for commercial/residential land through public tenders, auctions, and listings reached 21.78 million square meters of gross floor area, down 5% month-on-month and 27% year-on-year.
The transaction value for the month was 67.2 billion yuan, up 9% month-on-month but down 20% year-on-year.
Regarding market heat, the average premium rate in May was 5.8%, down 1.8 percentage points from the previous month and 1.3 percentage points year-on-year.
Benefiting from cities' continued efforts to control incremental supply and optimize offerings, premium parcels maintained spotty heat, keeping auction activity above the average level seen since the fourth quarter of 2025.
Land Acquisition Thresholds Decline Across the Board in First Five Months
From January to May 2026, the entry thresholds for land acquisition among the 100 typical sample firms continued to fall.
The thresholds for parcel value, total price, and construction area were 1.66 billion yuan, 810 million yuan, and 167,000 square meters, respectively, down 16.5%, 18.2%, and 22.8% from the same period in 2025, hitting a five-year low.
The comprehensive decline in thresholds reflects that overall investment willingness among developers remains low.
While a few leading firms actively replenished land banks in core cities, this did not translate into a broad market recovery, as most enterprises maintained a wait-and-see and cautious approach, caught in the dilemma of being unable to compete in core cities while not participating in non-core ones.
Top 100 Investment Firms Spend 270.8 Billion Yuan on Land
The total land acquisition volume by the 100 typical sample enterprises from January to May 2026 continued its year-on-year decline.
The figures for value, expenditure, and construction area were 547.63 billion yuan, 270.75 billion yuan, and 32.887 million square meters, respectively, representing year-on-year drops of 41.7%, 43.9%, and 24.8% and marking the lowest level in nearly five years.
Notably, the cumulative decline narrowed slightly compared to the January-April period, primarily due to higher land auction activity in core cities during May.
Furthermore, the steeper decline in spending compared to area reflects the "control volume, improve quality" strategy in core cities leading to a sharp overall transaction reduction, with only a few state-owned enterprises and leading private firms making sporadic replenishments.
It also underscores the continued caution among enterprises in the current weakly recovering market.
State-Owned Enterprises Remain the Main Force in the Land Market
From the perspective of acquiring firms, the current land market landscape is divided among state-owned enterprises, large-scale private enterprises, and local government financing vehicles (LGFVs).
LGFVs hold an absolute numerical advantage in acquisitions, with most activity focused on supporting markets in third- and fourth-tier cities.
State-owned enterprises, however, are actively investing in core cities.
Looking at the top ten firms by land acquisition spending (on a full-caliber basis), aside from private enterprise Binjiang Group, the rest are leading state-owned entities.
CHINA RES LAND (01109), YUEXIU PROPERTY (00123), and Poly Developments And Holdings Group Co.,Ltd. (600048) each spent over 20 billion yuan, ranking in the top three.
Overall, enterprise land acquisition remains relatively cautious, evident in the focus solely on premium parcels in core cities and the significant spending gap between top firms and others.
Future Focus on Premium, Low-Density Residential Land
It is anticipated that core cities will continue to focus on supplying premium, low-density residential land.
Coupled with the release of policy dividends from urban renewal, the land acquisition confidence of developers, predominantly state-owned enterprises, is expected to steadily recover.
Land heat in core residential areas is likely to remain high, with commercial-to-residential conversions and redevelopment of inefficient existing land use becoming important supply supplements, aligning with population inflow and urban functional upgrade demands.
From a tier differentiation perspective, key cities like Beijing, Shanghai, and Hangzhou are expected to maintain market activity due to industrial development and population concentration advantages, with high premiums continuing in core zones.
Ordinary second-tier and third/fourth-tier cities will persist with inventory reduction strategies, maintaining steady land supply rhythms and continuously optimizing supply structures, with the proportion of low-density, livable parcels with mature amenities and strong certainty increasing.
As policies for high-quality urban development are implemented, optimizing the synergy between population, industry, and public services, the overall investment certainty in the land market is expected to strengthen further.
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