Precio unitario cae 7000 yuanes/metro cuadrado en un año: Jinmao y Xiangyu ganan parcela en Jiading, Shanghai

21st Century Business Herald Tang Shaokui

On March 13th, Shanghai’s first land auction after the Spring Festival in 2026 concluded successfully. This auction included only three residential land parcels located in Xuhui Changqiao, Jiading New Town, and Qingpu Xihongqiao, with a total area of 151 mu, a total construction area of 198,000 square meters, and a starting price of 6.644 billion yuan. The parcels in Xuhui Changqiao and Jiading New Town were auctioned first, both sold at the base price, acquired respectively by Shangshi Chengkai and a joint venture of China Jinmao and Xiangyu; the Qingpu Xujing parcel was the final to be auctioned, won by Greentown China at a low premium rate. Ultimately, all three parcels were successfully sold, with total transaction amount reaching 6.8 billion yuan.

Previously, the highly anticipated Jiading New Town JDC1-1703 Unit B06-01 land parcel was won by a joint venture of China Jinmao and Xiangyu at the base price of 1.45918 billion yuan, with a floor price of approximately 24,500 yuan per square meter.

Public information shows that this Jiading New Town land is purely residential, with a transfer area of 35,000 square meters, a plot ratio of 1.7, a height limit of 40 meters, and a planned building area of about 59,600 square meters. Industry insiders point out that, thanks to its low plot ratio, the project is likely to develop a low-density product mix of “apartment + stacked villas,” filling the gap in high-quality low-density residential supply in the area.

It is worth noting that compared to similar residential land parcels in Jiading New Town last year, the floor price for the land acquired by Jinmao and Xiangyu this time has decreased significantly. In March 2025, after 49 rounds of fierce bidding, China Merchants Shekou took a residential land in Jiading New Town Yuanxiang Lake Central Activity Area for 2.66 billion yuan, with a floor price of up to 31,900 yuan per square meter, nearly 30% premium.

This means that the cost for Jinmao and Xiangyu to acquire land has decreased by about 7,000 yuan per square meter, a decline of nearly 22%. Public information shows that the land parcel acquired by China Merchants Shekou has already been developed into Linyuhu Lake, with sales prices ranging from 51,000 to 59,000 yuan per square meter.

This reflects that the overall land auction market in Shanghai is becoming more rational, with developers adopting a more cautious approach. Industry analysts suggest that the land price has fallen back to 24,500 yuan per square meter, leaving ample profit margin for developers. When comparing with nearby projects on sale, the low-density product in the southwest, about 1.4 km from the site, priced at approximately 67,000 yuan per square meter, indicates that the upcoming low-density products from this project are likely to be highly competitive in the market.

From the overall situation of this land auction, two parcels were sold at base price, and one at a low premium rate of 6.57%. Analysts point out that this demonstrates Shanghai’s 2026 land market opening with a “low premium, stable transactions” trend. The Changqiao parcel in Xuhui District was won by Shangshi Chengkai for 2.675 billion yuan, with a floor price of 48,511 yuan per square meter; the Xihongqiao parcel in Qingpu District was acquired by Shanghai Zhiyou Real Estate Co., Ltd., a subsidiary of Greentown Group, for 2.675 billion yuan, with a premium rate of 6.57%, and a floor price of about 32,000 yuan per square meter. Lu Wenxi, a market analyst at Centaline Shanghai, noted that Greentown has been very active in Shanghai land acquisitions, especially securing multiple “land kings,” which positively impacts its market influence and revenue in Shanghai.

Industry insiders point out that the low premium transaction pattern is closely related to Shanghai’s land policy orientation. Since the beginning of the year, Shanghai has adhered to a “small but refined” land supply strategy, prioritizing high-quality parcels with advantageous locations, mature supporting facilities, and fewer restrictions, while setting reasonable starting prices to reduce land costs for developers and stimulate market participation.

Lu Wenxi believes that since March, the “small spring” in the real estate market has quickly started, but the results of this round of land auctions show that developers are relatively cautious.

Yan Yuejin, deputy director of the Shanghai E-House Research Institute, stated that the overall transaction trend in this land auction clearly reflects the current market focus on “quality over quantity,” with local natural resource departments emphasizing stable market expectations through the supply of high-quality parcels.