Poly Developments Sets Sights on Changning Inner Ring Land King, Plans to Invest 10 Billion

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Source: LeCaijU

In 5 more days, that is March 30, the second batch of centralized land auctions in Shanghai this year will be held. Although it’s only a single residential land parcel, it is extremely significant.

The land parcel is named the Changning District C040101 Unit E1-17, E1-21 parcel. It consists of two sub-parcels. The total land area is 28,999.33 square meters, the plot ratio is 2.4–2.67, and the total planned gross floor area is about 76,216 square meters. The total starting bid price is 5.56375 billion yuan. For the Changning inner ring area, this parcel is a very large volume; it is expected that in the future more than 500 housing units will be supplied.

Yesterday (March 24), real estate developers had already expressed strong interest in the land parcel. A company under Poly Development—Shanghai Poly Jianlin Real Estate Co., Ltd.—released an announcement of its tendering plan for the land parcel project, intending to invest 10 billion yuan, with construction and installation costs of 930 million yuan.

Notably, this will also be Poly Development’s first appearance in the land auction market since 2026. Previously, on January 6, January 29, and March 13, three days of land auctions were held in Shanghai. A total of 8 land parcels were released, but Poly Development did not show up.

This land auction is also widely considered to be the most important one since the beginning of this year. Since last October, the residential property market in Shanghai’s urban core has started to decline, and the market urgently needs a land auction to boost confidence. Meanwhile, the Changning land parcel is the first inner-ring residential land released this year, which is why it has drawn a great deal of attention.

The parcel is located within the inner ring of Changning District. The nearest subway station is Longde Road, which means it has the capability to reach the Global Harbor commercial district and Zhongshan Park commercial district in one stop. It is even fairly close to Jing’an Temple and Nanjing West Road, and the surrounding supporting resources are, without a doubt, fairly solid.

More importantly, the area where the parcel is located has had no new-home supply for a very long time. The sector is mainly made up of old, run-down properties and second-hand homes built more than five years ago. For second-hand homes with slightly better quality, prices are around 100,000 yuan per square meter.

Based on the Changning parcel’s starting floor price of 73,000 yuan per square meter, if the final premium rate does not exceed 10%—that is, if the floor price is kept around 80,000 yuan per square meter—then the future selling price would be controlled to within 130,000 yuan per square meter, making the cost-effectiveness very evident.

The Changning mid-ring and the Yue Changning projects within the same district might be the most hurt, because their home prices are above 130,000 yuan per square meter, creating an inverted price situation between the inner and mid-rings. So, will China Merchants and Yuexiu team up to push up prices?

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