Poly Developments makes two moves within 5 days: the Hangzhou land market's "scarcity and excellence" resonates with real estate companies' "stability and precision"

On March 10th, two highly anticipated land transfer events took place domestically, with residential land transactions in Hangzhou and Chengdu showcasing different characteristics of their respective land markets. Among them, a residential land parcel in the core area of Qianjiang Century City in Hangzhou was fiercely contested and ultimately won by Poly Developments, while in Chengdu Xindu District, two land parcels exhibited a hot and cold transaction pattern.

The land transfer of a residential plot in the core unit of Century City, Xiaoshan District, Hangzhou, became the focus of the day. The parcel covers an area of 23,133 square meters, with a planned construction area of 41,639.4 square meters. Its floor area ratio of 1.8 makes it a rare low-density residential land in the area in recent years. After 23 rounds of bidding, Poly Developments won the bid with a total price of 1.586 billion yuan, achieving a floor price of 38,084 yuan per square meter, with a premium rate of 16.11%. Although this premium rate is lower than the 51.08% premium land acquired by Poly Developments in Hangzhou Shangcheng District on March 6, the floor price still exceeds that of the nearby Greentown Lixiangting project.

Industry analysts pointed out that the value of this land parcel mainly lies in three aspects: First, the 1.8 floor area ratio provides an inherent advantage for developing “garden-style + small high-rise” improved products; second, the site is only 500 meters straight-line distance from the Olympic Sports Center core area, with well-developed supporting facilities such as Metro Line 7 Xingyi Station and Jindi T-ONE shopping mall; third, Poly Developments’ ongoing sales success with the Poly Tianjun project in Century City indicates a precise understanding of customer demand in the area. Gao Yuansheng from China Index Academy believes that current real estate companies’ investment strategies show a “certainty-first” characteristic, and high-quality core area land parcels continue to be recognized for their risk resistance.

On the same day, land transfer in Chengdu Xindu District showed a divergent pattern. The residential land in Xindu New City covers an area of 22,951.7 square meters, with a planned construction area of 45,903 square meters. After multiple rounds of bidding, Chengdu Huari Chenzhi Real Estate acquired it with a premium rate of 10.19%, at a floor price of 5,950 yuan per square meter. Meanwhile, the mixed commercial and service land in the Pihuhe area was sold at the base price. This parcel has a commercial proportion of 30%-40%, and was ultimately acquired by Xindu Kexin Technology at a floor price of 4,400 yuan per square meter. The total transaction amount for the two parcels was 412 million yuan.

Notably, Poly Developments has recently been active in the Hangzhou land market. On March 6th, the company acquired a land parcel in Shangcheng District for 3.224 billion yuan, with a premium rate of 51.08%. Within just five days, it secured two core city locations, demonstrating a clear strategy to deepen its presence in Hangzhou. Gao Yuansheng analyzed that Hangzhou’s “scarce but refined” land supply strategy resonates with real estate companies’ “steady and precise” investment needs, and the scarcity of high-quality core area land parcels is increasingly evident during market adjustments.

The Chengdu market, on the other hand, shows a different development logic. The two land parcels in this transfer are located in different sectors of Xindu District, with differences in commercial supporting facilities directly affecting developers’ willingness to acquire land. Industry insiders point out that current land acquisitions outside core areas are more cautious, and parcels with a high commercial proportion often require specific operational capabilities, which explains the base price transaction of the Pihuhe land. As market segmentation intensifies, the land market performance across different cities and regions will continue to exhibit differentiated characteristics.