In the current year up to December 21, revenues from sales of land by local governments to real estate developers in 50 major Chinese cities amounted to RMB 3.95 trillion ($6.04 trillion), up 18.7 percent year on year, according to the research center of Centaline Group, a Shanghai-based real estate research institute.
In particular, revenues from sales of local government land in Shanghai, Hangzhou, Guangzhou and Nanjing exceeded RMB 200 billion ($30.6 billion), while in nine cities, including Beijing, Wuhan, Ningbo, Foshan, Suzhou, Chengdu, Chongqing, Shenzhen and Xi’an, such revenues exceeded RMB 100 billion ($15.3 billion).
Meanwhile, there were 31 cities whose revenues from sales of land exceeded RMB 50 billion ($7.6 billion), reaching a historically high level.
Zhang Dawei, chief analyst of Centaline Group, said that the rises in the average land premium rate (the difference between the highest bids paid by property developers and the initially asked prices for land) happened in some cities, with some cities’ land prices reaching their highest historical levels.
$1 = RMB 6.5387