[photopress:real_estate_Poly.jpg,full,alignright] Over the past 11 months real estate developers in China have been snapping up available land like a starving dingo with a dead rabbit. This according to a recent study by China Securities Journal although different and more sober language was used.
The newspaper released a study of 86 land acquisition announcements so far this year made to the country’s two stock exchanges.
About 70% were located in the eastern Yangtze River Delta, the northern cities of Beijing and Tianjin, neighboring Hebei Province and the southern Guangdong Province.
Twenty-two listed real estate developers spent a combined RMB38.32 billion (US$5.1 billion) in 54 land acquisitions since July, a significant growth rate when compared to RMB14.71 billion spent jointly by 16 listed property developers in 32 deals in the first half of this year.
The study showed that during 2006, a total of RMB15.88 billion was spent in land acquisition deals by 17 listed real estate companies.
Gemdale Group, Poly Real Estate and Tianjin Reality Development were the most aggressive developers enlarging their land reserves over the past five months, accounting for 53.91% of the total.
Gemdale, the Chinese developer partnered with ING, has bought seven land plots with a total of RMB9.024 billion since the second half; Poly, China’s largest state-owned developer, acquired seven plots with some RMB6.56 billion; and Tianjin Reality spent a total RMB5.073 billion securing five land plots.
Nationwide, average land prices increased by 9.8%, 13.5% and 15% respectively in the first three quarters of this year, according to figures released by China Real Estate Chamber of Commerce.
(This has nothing to do with anything very much. But if you search in Google under Images to find something with which to illustrate this article and enter “Poly Real Estate” and the let Google search images the first 18 out of 20 are from the China Economic Review, as are the first 36 from 40, and 56 from the first 60. We have no idea what causes this. Perhaps this is the site on which the sun never sets. And, yes, the illustration is Poly.)
Source: Shanghai Daily