Data from the China Index Academy reveals that the total land acquisition expenditure by the top 100 real estate enterprises amounted to 146.52 billion yuan during the January-March period, marking a significant year-on-year decline of 49.4%. However, the rate of decrease narrowed by 3.0 percentage points compared to the previous month. Following the conclusion of the Spring Festival holiday, land supply and transaction activities across various regions showed signs of recovery, with hotspot land plots being introduced in cities such as Shanghai and Hangzhou. As a result, property developers increased their land acquisition efforts compared to the prior month, leading to a reduced contraction in spending.
High-quality land plots in core cities continued to attract intense competition. For instance, a residential plot in Hangzhou's Shangcheng District underwent 109 rounds of bidding before being acquired by Poly Developments And Holdings Group Co.,Ltd. for a total of 3.22 billion yuan, representing a premium rate of 51%. State-owned and central government-backed enterprises remained the dominant players in land acquisitions. Major entities such as Poly Developments And Holdings Group Co.,Ltd., CHINA RES LAND, CHINA JINMAO, and YUEXIU PROPERTY were among the top spenders.
In terms of newly added project value, Guangdong YUEXIU Group, CHINA RES LAND, and Poly Developments And Holdings Group Co.,Ltd. secured the top three positions. From January to March, Guangdong YUEXIU Group led with 71.1 billion yuan in new project value, followed by CHINA RES LAND with 27.0 billion yuan, and Poly Developments And Holdings Group Co.,Ltd. with 24.7 billion yuan. The combined new project value of the top 10 enterprises reached 186.7 billion yuan, accounting for 38.5% of the total among the top 100, with the entry threshold being 2.0 billion yuan.
The first quarter witnessed a continuation of the "reduced volume, improved quality" trend in land supply, with core plots in cities like Guangzhou and Hangzhou fetching high premiums. Compared to the same period last year, local governments generally slowed their land supply pace, adhering to a strategy focused on quality over quantity. Premium plots in key cities maintained high premium levels. Data indicates that, as of March 28, the planned construction area for residential land supply in 300 cities was 64.72 million square meters, down 23.8% year-on-year. The transacted area was 58.93 million square meters, a decrease of 25.9%, while land transfer revenues fell by 45.7% to 215.4 billion yuan. The average premium rate stood at 5.0%. Apart from intense bidding for core plots in Guangzhou, Shanghai, and Hangzhou, land auction sentiment remained subdued in most areas.
Across all city tiers, both transaction areas and land transfer revenues declined year-on-year during the quarter, reflecting slower government land release and cautious acquisition strategies by developers. In first-tier cities, the land market remained relatively stable, with supply maintaining a certain scale. The transaction area decreased by just over 10% year-on-year; however, due to a high base effect from numerous premium plots in Shanghai and Beijing during the first quarter of the previous year, land transfer revenues dropped by nearly 50%. In second-tier cities, aside from Hangzhou and Chengdu, most cities recorded low supply and transaction volumes for residential land, with transfer revenues falling by over 60%. Third- and fourth-tier cities continued their adjustment phase, with supply and transaction indicators declining by close to 20%.
Competition for high-quality assets remained fierce. A prime example is the Guangzhou Ma Chang Phase I plot, which, after 9 hours and 243 rounds of bidding, was secured by YUEXIU PROPERTY for 23.604 billion yuan, with a premium rate of 26.6%. This transaction ranked as the second-highest total value in Guangzhou's history and fifth nationally, setting a new record for residential land price per square meter in the city at approximately 85,000 yuan.
Based on disclosed land supply plans from various cities, strategies for 2026 further emphasize "controlling new supply, reducing inventory, and optimizing structure." Regarding supply control, many regions have reduced their annual land supply targets. For instance, Beijing lowered its commodity residential land supply plan to 200-240 hectares, a reduction of 40-60 hectares from 2025. Xiamen explicitly stated that supply volumes would be calibrated based on the average supply of the past three years and actual sales from 2025, aiming to align supply with the current market absorption pace. The focus on quality supply is accelerating, with priority given to high-quality and improved housing projects. Beijing is promoting "good housing" construction near transit hubs and employment centers, while Shenzhen emphasizes precise demand matching. Hangzhou plans to moderately increase land supply for improved housing, guiding developers to shift from scale competition to quality competition.
Simultaneously, revitalizing existing land and urban renewal have become key directions. Beijing continues to guide the proportion of existing construction land to reach 65%, gradually ensuring that urban renewal scales are no less than new supply. Shenzhen is categorizing and identifying existing resources to promote the redevelopment of inefficient land, and Xiamen is striving to increase the share of existing land in annual supply.
Analysis of land acquisition amounts by city clusters shows significant divergence among the four major clusters. The Yangtze River Delta region exhibited the highest activity, led by Poly Developments And Holdings Group Co.,Ltd. with 10.7 billion yuan in acquisitions, followed by active participation from leading firms like Greentown China and CHINA JINMAO. The Guangdong-Hong Kong-Macao Greater Bay Area presented a unique pattern, dominated by Guangzhou YUEXIU Group's massive 23.6 billion yuan acquisition, which significantly boosted the regional total, while other enterprises generally made smaller purchases. The Beijing-Tianjin-Hebei region recorded a relatively small total acquisition amount, with central and local state-owned enterprises taking the lead, indicating strong support from local government-backed entities.
Regarding top acquiring enterprises in key cities, leading developers concentrated their efforts on Shanghai. Greentown China also focused on expanding its land bank in Ningbo, ranking high in that city's list, reflecting its deep presence and financial strength within Zhejiang Province. Private enterprises like Minmetals and Shanghai Zidu Real Estate concentrated on their core regions for strategic expansion, appearing in the top lists for Guangzhou and Shanghai, respectively. In second-tier and lower-tier cities such as Wuxi, Ningbo, and Nantong, local state-owned enterprises became the absolute main force in land acquisitions.
Among the top 10 residential land transactions by total value nationwide in March, leading central state-owned enterprises secured multiple high-value plots in core cities. Three plots in Shanghai made the list, with a plot in Changning District fetching the highest price at 5.1 billion yuan and a premium rate of 6.45%; most other top transactions were in second-tier cities. During the month, Poly Developments And Holdings Group Co.,Ltd. and CHINA JINMAO each acquired two high-value residential plots, spending 8.3 billion yuan and 3.7 billion yuan, respectively. Greentown China, C&D Real Estate, and CHINA RES LAND each secured one plot.
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