According to statistics from the Central Plains Research Center, 13 cities represented by Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Chongqing, Chengdu, Nanjing, Hangzhou, Suzhou, Wuhan, Changchun and Changsha have reduced their land sales in 2012. As of May 24, the total land transfer fee was 129.23 billion, which was a year-on-year decrease of 91.13 billion in the first half of 2011, a drop of 41% year-on-year.
Zhang Dawei, director of Beijing Zhongyuan Market Research Department, believes that the main reason for the sharp decline in land transfer is that most developers have reduced the land quota. In the context of a market that is not selling well, developers are becoming more cautious in land development. In addition, local governments have slowed down the pace of land listings in order to avoid excessive bidding, especially the supply of residential land has decreased significantly this year.
Professionals expect that the land follow-up market will still be dominated by deserts this year, while in first-tier cities such as Beijing, there is still no shortage of hot land. It is expected that in the already announced 2012 Beijing land supply plan, there may be two extremes. A small number of hotspots may be popular in the market, while other plots may continue to cool down due to the deepening of regulation.
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