Fangfang Real Estate Consulting recently made a survey on 15 real estate developers that have land reserves in Shanghai and take leading positions in local market by annual property sales. They include Shanghai-based Greenland Group and Dahua Group, Shenzhen-based Gemdale Corporation and China Vanke and foreign-funded players like Hutchison Whampoa Property and Sun Hung Kai Properties.
The 15 developers’ land reserves totals 21.46 million square meters. Each of Vanke, Dahua Group, Greenland Group and Hopson Development Holdings Ltd. has over 2-million-square-meter land reserves, especially Vanke, the largest real estate developer in China, had 2.99-million-square-meter land reserves, the biggest among the 15 ones.
The land reserves, most of which were acquired in and before 2007, can sustain about six-year development on average, based on the 15 developers’ property areas sold in 2008. But none of them bought land in the first quarter of 2009.
Trading Markets reports that the Greenland Group last month bought No.15 B land plot on Chenhua Road, Songjiang District for RMB950 million, representing a 30% premium ratio against the bottom price.
Poly Real Estate Group, which reaped RMB6.48 billion sales incomes in the first quarter of 2009, accelerated the pace of buying lands.
Moreover, large real estate developers such as Vanke and Gemdale Corporation plan to buy lands in Beijing this year. Twenty-two land plots will be listed on Beijing’s land market this month.