Shanghai's First Batch of Centralized Land Sales in 2026 Reaches 6.8 Billion Yuan in Total Transactions; Experts: Real Estate Developers Emphasize Safety Margins and Sales Certainty in Investment Decisions

On March 13, Shanghai’s first batch of centralized residential land parcels entered on-site bidding. Three parcels were sold for a total of 6.809 billion yuan, with a total area of 100,634.69 square meters and a planned construction area of 198,365.04 square meters. The starting total price was 6.644 billion yuan.

In this auction, the only premium transaction was for the QPPO-0101 Unit 18-05 parcel in Qingpu District. The parcel attracted two bidders. After 33 rounds of bidding, Shanghai Zhiyou Real Estate Co., Ltd., a subsidiary of Greentown China (03900.HK), won with a total price of 2.675 billion yuan, not reaching the stopping price of 3.263 billion yuan. The premium rate was 6.57%, and the floor price was 31,972 yuan per square meter. The other bidder was Shanghai Xiangwei Real Estate Development Co., Ltd., under Xiangyu Group.

According to the transfer documents, this parcel is designated for ordinary commercial housing. It is bounded east by Panlong Road, west by Panhe Road, south by Xumin East Road, and north by Huiheng Road. The transfer area is 38,029.65 square meters, with a plot ratio of 2.2, a planned building area of 83,665 square meters, and an initial total price of 2.51 billion yuan.

Image source: Haodiwang

The Duhongqiao area where the parcel is located is generally in a rational correction phase. CRIC data shows that the new home market within a 3-kilometer radius is active, with transaction prices stabilizing between 60,000 and 70,000 yuan per square meter from late 2025 to early 2026. Projects like Greentown Chunxiao Garden and Tongji Panlongli are active, and high-end projects such as China Resources Hongqiao Runjing have transaction prices exceeding 70,000 yuan per square meter.

A nearby parcel in Qingpu District, QPPO-0101 Unit 17-05, was sold in November last year for 1.73 billion yuan, with a premium rate of 5.17% and a floor price of 31,561 yuan per square meter. The winning bidder was Zhejiang Baoye Real Estate Group Co., Ltd. The project plans to build nine high-rise residential buildings, including two 15-story, two 16-story, and five 18-story buildings.

The other two parcels on the same day were sold at the base price. The S031102 Unit S04-16 parcel in Xuhui District was sold for 2.675 billion yuan to Shanghai Chengkai (Group) Co., Ltd., with a floor price of 48,511 yuan per square meter.

Transfer documents show that this parcel is designated for ordinary commercial housing and commercial use. The transfer area is 27,570.79 square meters (75% residential, 25% commercial), with a plot ratio of 2, a building area of 55,141.58 square meters, and an initial total price of 2.675 billion yuan. The starting floor price is 48,511 yuan per square meter.

According to the Xuhui District Planning and Natural Resources Bureau, this parcel is located in the southwest core area of Xuhui District, within a high-level sci-tech innovation corridor, adjacent to the North Yang Artificial Intelligence Town, forming a “dual-core linkage” with Caohejing Development Zone. It will be developed into a community integrating quality living, smart commerce, and diverse public services. The parcel is near the Luoxiu Road Station of Metro Line 15 and close to the Middle Ring Elevated Road, with a 15-minute drive to core commercial areas like Xujiahui and Caohejing.

The transfer requirements specify that villas and private estates are prohibited on this land; the parcel size cannot be arbitrarily subdivided, use cannot be changed, development intensity and building height controls must be maintained; standalone buildings with fewer than five floors (including five) are not allowed; and private courtyards larger than 200 square meters are prohibited.

Another parcel in Jiading District, JDC1-1703 Unit B06-01, was won by a consortium of three companies: Shanghai Xiangying Real Estate Development Co., Ltd. (a subsidiary of Xiangyu Group), Beijing Dongya Xinhua Investment Group Co., Ltd., and Suzhou Tengmao Real Estate Co., Ltd., under China Jinmao.

Transfer documents show this parcel is designated for ordinary commercial housing. It covers 35,034.25 square meters, with a plot ratio of 1.7, a building area of 59,558.23 square meters, starting at 1.459 billion yuan, with a floor price of 24,500 yuan per square meter.

According to Haodiwang, this parcel is in the core area of Jiading New Town, 500 meters from Baiyin Road Station on Line 11. To the south is Ziqi Donglai Park, and Youxiang Lake Park is within walking distance. About 1.5 kilometers southeast,招商林屿湖畔 is on sale, with high-rise prices around 48,000 to 52,000 yuan per square meter.

Regarding this land auction, Yan Yuejin, Deputy Director of Shanghai E-House Research Institute, stated that this batch aligns well with the industry’s “quality over quantity” approach. In an industry in a correction cycle, real estate companies are more focused on safety margins and sales certainty. For areas under commercial pressure or with fierce short-term competition, developers tend to adopt a wait-and-see attitude. Conversely, for high-quality parcels with advantageous locations, mature supporting facilities, and clear sales prospects, they are still willing to pay premiums. This “quality over quantity” approach also helps ensure the supply of high-quality housing and maintain balanced supply and demand.

Yan Yuejin noted that Shanghai’s land auction market offers valuable insights for the national market. The final premium rate of the Qingpu Xujing parcel will be a key focus. Its premium level not only reflects current developer valuation of Hongqiao’s core area but also helps anchor land and residential prices in surrounding regions. Additionally, the successful sale of this parcel will help stabilize market expectations among industry participants regarding land investment.