Shanghai's first land auction following the "Hu Seven Measures" policy secures 6.8 billion yuan from three plots

Shanghai today welcomes the first land auctions following the implementation of the “Seven Policies” in Shanghai.

This time, Shanghai offered three residential land parcels, totaling approximately 100,000 square meters, with a starting total price of 6.644 billion yuan. All three parcels were successfully sold, with a total transaction amount of 6.809 billion yuan.

The parcels located in Changqiao, Xuhui, and Xinjing, Jiading, led the bidding, both selling at the starting price.

Among them, Shanghai Real Estate Group acquired the Xuhui District S031102 unit S04-16 land parcel for 2.675 billion yuan, with a floor price of 48,511 yuan per square meter. The planned construction area is 55,141 square meters, and the land use is for general commercial housing and commercial purposes.

The joint bid by China Jinmao and Xiangyu Group secured the Jiading District JDC1-1703 unit B06-01 land parcel for 1.459 billion yuan, with a floor price of 24,500 yuan per square meter. The planned construction area is 59,558 square meters, designated for general commercial housing.

The Qingpu Xujing land parcel attracted two developers, Greentown and Xiangyu, competing on-site. Ultimately, Greentown won the bid at 2.675 billion yuan, with a floor price of 31,972 yuan per square meter, a premium rate of 6.57%.

“Xujing land is the largest pure residential land among this batch of parcels, so it received significant attention from developers. In terms of technical indicators, the parcel covers 38,000 square meters with a construction area of about 83,700 square meters. The size is substantial, providing ample space for development,” said Lu Wenxi, Senior Research Manager at Centaline Property.

Zhang Wenjing, General Manager of Shanghai Data at the China Index Academy, noted that four companies participated in the bidding, mainly state-owned enterprises and local urban investment platforms. The Jiading and Xuhui parcels were both acquired at starting price by a single bidder, while the Qingpu parcel saw two rounds of bidding before Greentown emerged victorious. This pattern reflects that current developer investment remains focused on core areas with high-quality land, with overall bidding being cautious.

“As the first batch of residential land sales in 2026 and the first land auction after the ‘Seven Policies’ implementation, Shanghai’s land market opened steadily, sending a positive signal: core area parcels remain attractive, with limited premium margins, which helps guide market expectations reasonably and leaves more room for developers to replenish supply,” Zhang Wenjing said.

Lu Wenxi pointed out that since March, Shanghai’s spring market has been accelerating, but developers have been cautious in this auction, which relates to the land’s inherent qualities and market dynamics.

“Regarding the land itself, these parcels are not the top-tier core area sites. For example, the Xuhui parcel is in the city but relatively small and includes commercial components. On the market side, after policy introduction, the secondary housing market has shown positive feedback, but the heating-up of new homes is slower than second-hand homes. Especially for suburban projects, the market is still in the early stages of improving indicators. Although the number of new customers has increased, transaction data has not yet seen explosive growth. We expect these positive effects to gradually become evident over time. Developers may observe for a while before making decisions,” Lu Wenxi explained.

According to real estate monitoring data, Shanghai’s new policies have triggered positive signals in the secondary housing market.

Data from 58 Anjuke shows that after Shanghai introduced its housing policies, the market’s first four days were spent digesting the policies, but on March 1, second-hand home transactions exceeded 1,000 units, a 37.5% increase from January’s baseline. On March 7 (Saturday), second-hand transactions reached 1,324 units, the eighth-highest in the same period, a 79.7% increase from January, indicating a significant policy effect.

Additionally, data shows that after the “Seven Policies” were introduced on September 29, 2024, the secondary market experienced about two weeks of adjustment, reaching 1,334 transactions by October 13 (the 15th day, excluding National Day holidays). After the new “Seven Policies” in Shanghai, only ten days were needed for second-hand transactions to reach 1,324 units, showing a rapid market response.

Zhang Bo, Director of the Research Institute at 58 Anjuke, compared the two sets of “Seven Policies,” noting a shift in policy focus. The 2024 policies aim to lower purchase thresholds and stimulate demand, while the 2026 policies focus on activating market liquidity and smoothing the exchange chain, directly addressing the core market issues of “unsellable old houses and unaffordable new houses.”

“Based on our data, after Shanghai’s recent policy implementation, market activity and user conversion efficiency are at historic highs, providing strong support for sustained market stabilization and recovery,” Zhang Bo said.

Sherwin-Williams China Research Department Head Xie Chen pointed out that the improvement in Shanghai’s second-hand housing market, with activated transaction volume, helps boost the enthusiasm for new housing.

“Many owners who sell their second homes will re-enter the market shortly after, entering the new housing market. However, since it takes time for owners to sell their current properties, there is a time lag before these improved demand segments translate into new home transactions. Therefore, the effects on the new housing market will be long-term, not just short-term,” Xie Chen said in an interview.