Following the acquisition of a land parcel on Nantai Road in Haizhu District, Poly Developments has once again secured a plot in Guangzhou this month.
On December 18, a residential land parcel in Guangzhou's Baiyun New Town went up for auction, attracting bids from Poly Developments and Yuexiu Property. After 31 rounds of bidding, Poly Developments won the plot with a total price of 1.983 billion yuan, representing a premium rate of 17.82% and a floor price of 37,703 yuan per square meter.
This marks another land acquisition by Poly Developments in Guangzhou this month. On December 5, the company secured a plot on Nantai Road in Haizhu District for 3.5 billion yuan after 76 rounds of bidding spanning approximately three hours, achieving a premium rate of about 27% and a floor price of 24,389 yuan per square meter. Yuexiu Property was also a competitor in that auction.
Since the beginning of December, Guangzhou's land market has seen steady supply, with no failed auctions reported so far. Apart from the intense bidding between Poly Developments and Yuexiu Property, other transactions are noteworthy—some manufacturing firms have begun participating in land auctions. For instance, Funiu Real Estate recently acquired a residential plot in Zengcheng, Guangzhou.
With these new entrants, Guangzhou's land market is gradually evolving into a landscape dominated by state-owned and central enterprises, with private firms selectively investing. Against this backdrop, market expectations suggest that land sales activity in Guangzhou may further increase next year.
**Poly Developments Deepens Presence in Guangzhou** In recent years, Poly Developments has focused on acquiring plots in core areas for mid-to-high-end residential developments, and the newly secured Baiyun New Town parcel aligns with this strategy.
According to the land sale announcement, the plot covers 31,200 square meters, with a gross floor area of 52,600 square meters and a plot ratio of 2.3. The starting bid was 1.683 billion yuan, with a floor price of 32,000 yuan per square meter. Market analysts anticipate this low-density plot, surrounded by high-end residential projects, will become another landmark development in Baiyun New Town.
Data from CRIC shows that as of December 15, Baiyun New Town recorded 22,200 square meters of residential sales this year, with an average price of 72,774 yuan per square meter.
Earlier this month, Poly Developments also acquired a mixed-use plot in Haizhu District, featuring residential, commercial, and educational land uses. With a plot ratio of 3.4, it stands out as one of the lower-density residential plots in western Haizhu.
Guangzhou serves as Poly Developments' headquarters and a key revenue driver. On November 7, the company's Yuexi Bay project achieved over 10 billion yuan in sales upon launch, making it the first "billion-yuan debut" project in China this year.
CRIC data indicates that Poly Developments has spent 7.734 billion yuan on land acquisitions in Guangzhou this year, ranking second among developers. The company also leads Guangzhou's sales charts, with 42.1 billion yuan in equity sales and 49.067 billion yuan in full-scale sales in the first 11 months.
**Manufacturing Firms Enter the Fray** While core-area plots are dominated by large state-owned enterprises, some manufacturing firms are venturing into smaller plots in familiar regions.
On December 12, Funiu Real Estate secured a 310-million-yuan plot in Zengcheng's Lihu Street, with a floor price of 8,832 yuan per square meter after deductions. The low-density plot, near the Zengcheng district government, may be developed into townhouses or villas.
Funiu Real Estate is a local firm under Guangzhou Yonghui Paper, a corrugated paper and packaging manufacturer established in 1999.
In July, Yiyun Group acquired a residential plot in Baiyun's Longgui area, with a plot ratio of 1.7. The company, founded in 2020, has partnered with Longfor to develop a high-end residential project named "Lingnan No. 1."
Other private firms, such as Panyu Properties and Agile Group, have also quietly entered the market. Some of these acquisitions involve repurposing industrial or commercial land for residential use, reflecting government efforts to revitalize land resources.
A Guangzhou-based property investment executive noted, "The introduction of repurposed plots demonstrates the government's commitment to stabilizing the market. By offering premium plots, authorities aim to boost developer confidence amid cautious sentiment."
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