In the first quarter, 300 cities' residential land transfer fees totaled 215.4 billion yuan, with an average premium rate of 5%.

The China Index Academy’s data shows that in Q1 (as of March 28), 300 cities generated CNY 215.4 billion in residential land transfer revenue from land auctions, with an average premium rate of 5%. Apart from high-premium bidding for core plots in places like Guangzhou, Shanghai, and Hangzhou, land auction sentiment in many other areas remains subdued.

According to the data, in Q1 (as of March 28), 300 cities introduced 64.72 million sq.m. of planned GFA for residential land, down 23.8% year over year; 58.93 million sq.m. was transacted, down 25.9% year over year; land transfer revenue totaled CNY 215.4 billion, down 45.7% year over year; and the average premium rate was 5.0%.

The China Index Academy said that in Q1, compared with the same period last year, local governments overall slowed the pace of land supply. Land transfer strategies continued to follow a “reduce quantity and improve quality” direction, with both the volume of residential land put on the market and the transacted scale in 300 cities declining by more than 20% year over year.

Looking at cities across tiers, the data shows that in Q1 (as of March 28), the land market in first-tier cities remained relatively stable. The supply side maintained a certain scale, and the year-over-year decline in transaction area was just over 10%. However, due to the relatively large number of high-quality plots in Shanghai and Beijing in Q1 last year, with a high base effect, the year-over-year decline in transfer revenue was close to 50%. In second-tier cities, except for Hangzhou and Chengdu, most cities saw both residential land releases and transaction volumes remain relatively low, with the year-over-year decline in transfer revenue exceeding 60%. In third- and fourth-tier cities, the land market maintained an adjustment trend, and the year-over-year declines in both release and transaction indicators were close to 20% in each.

In terms of land-auction heat, the China Index Academy said that real estate developers’ funds continued to concentrate on high-quality assets with stronger certainty. High-premium levels for high-quality plots in core cities have remained relatively high. Among them, the Guangzhou Ma’chang plot, with a total price of CNY 23.6 billion, drove Guangzhou’s Q1 land transfer revenue to rank first nationwide.

Specifically, on February 25, the Guangzhou Ma’chang plot was bid for 9 hours and 243 rounds, and was won by Yuexiu Properties for CNY 23.604 billion. The premium rate was 26.6%. The total成交 price ranked second in Guangzhou’s history and fifth nationwide. The residential land price per floor area was about CNY 85,000/sq.m., setting a new record for Guangzhou’s residential land floor-area price. On March 13, a residential plot in Xujing Town, Qingpu District, Shanghai was won by Greentown at a 6.6% premium rate. The total成交 price was CNY 2.67 billion, with a floor-area price of CNY 31,972/sq.m. The plot was the only premium-bid成交 plot in that batch, with a distinct locational value advantage. On March 6, a residential plot in Chengdong New City, Shangcheng District, Hangzhou, after 109 rounds of bidding, was acquired by Poly at a total price of CNY 3.22 billion and a premium rate of 51%. The成交 floor-area price reached CNY 44,985/sq.m.

However, the China Index Academy noted that apart from high-premium auctions for core plots in places like Guangzhou, Shanghai, and Hangzhou, the land market in most cities is still operating at low temperature, and auctioned plots in Qingdao, Beijing, Fuzhou, Wuhan, and Tianjin were all transacted at the reserve price. On the one hand, the pace of land supply has slowed, and fewer high-quality plots have been released in core areas; on the other hand, real estate developers’ funding conditions remain under pressure, with land acquisition highly focused on core-city high-certainty segments, while developers remain cautious about plots outside core areas.

Against the backdrop of slowing supply, the premium rate across the 300 cities remains low overall. The data shows that in Q1 (as of March 28), the average premium rate for residential land in the 300 cities was 5.0%. Among them, January saw relatively flat conditions in the land market; in February, boosted by high-premium plots such as the Guangzhou Ma’chang plot, the premium rate rose to 10.7%; and in March (up to the 28th), the average premium rate was 3.3%.

For land-acquiring companies, central and state-owned enterprises remain the absolute main force. The data shows that in Q1 (as of March 28), among the cumulative land acquisition amount in 22 cities, central and state-owned enterprises accounted for 58%. The shares of central and state-owned enterprises in Beijing, Shanghai, Guangzhou, and Xiamen were all above 60%. Local state-owned assets accounted for 26%, down 5 percentage points compared with full-year 2025; private enterprises accounted for 11%, with acquisition efforts still relatively weak. Some local private enterprise deployments in cities such as Chengdu and Tianjin were comparatively more active.

The China Index Academy believes that overall, the land market in Q1 continued to feature the “reduce quantity and improve quality” orientation and the “spot-like high heat” characteristics, and the differentiated trend persisted. In Q2, core areas in first-tier cities and strong second-tier cities are expected to see more high-quality residential land come to market. With quality locations and improved supporting facilities, it may help maintain land market heat and stabilize expectations. Meanwhile, the land market for suburban plots in third- and fourth-tier cities and for suburban plots in first- and second-tier cities will still face pressure. A full recovery in the land market still depends on an actual recovery in commodity housing sales, as well as the continued restoration of developers’ investment confidence.