Unit Price Declined by 7,000 Yuan/sqm in One Year: Jinmao and Xiangyu Win Shanghai Jiading Land Parcel

21st Century Business Herald Tang Shaokui

On March 13, Shanghai’s first land auction after the Spring Festival in 2026 concluded successfully. This auction only included three residential land parcels, located in Xuhui Changqiao, Jiading New Town, and Qingpu Xihongqiao. The total land area was 151 acres, with a total construction area of 198,000 square meters, and a starting price of 6.644 billion yuan. The parcels in Xuhui Changqiao and Jiading New Town were auctioned first, both sold at the base price, and were acquired by the joint ventures of Shanghai Shiyu Chengkai and Jinmao with Xiangyu; the Qingpu Xujing parcel was the final lot, won by Greentown China at a low premium rate. In the end, all three parcels were successfully sold, with total transaction amount reaching 6.8 billion yuan.

Previously, the highly watched Jiading New Town JDC1-1703 Unit B06-01 land parcel was won by Jinmao and Xiangyu joint venture at the base price of 1.45918 billion yuan, with a floor price of approximately 24,500 yuan per square meter.

Public information shows that this Jiading New Town land is purely residential, with a land area of 35,000 square meters, a plot ratio of 1.7, a height limit of 40 meters, and a planned building area of about 59,600 square meters. Industry insiders point out that, thanks to its low plot ratio, the project is likely to develop a low-density product mix of “garden-style houses + stacked villas,” filling a gap in high-quality low-density residential supply in the area.

It is worth noting that, compared to similar residential land parcels in Jiading New Town last year, the floor price for Jinmao and Xiangyu’s recent acquisition has decreased significantly. In March 2025, after 49 rounds of fierce bidding, China Merchants Shekou took a residential land in Jiading New Town Yuanxiang Lake Central Activity Area for 2.66 billion yuan, with a floor price of up to 31,900 yuan per square meter, nearly 30% premium.

This means that the cost for Jinmao and Xiangyu to acquire land has decreased by about 7,000 yuan per square meter, a decline of nearly 22%. Public information shows that the land parcel acquired by China Merchants Shekou has already been developed into Linyuhu Lake, with sales prices ranging from 51,000 to 59,000 yuan per square meter.

This reflects that the overall land auction market in Shanghai is becoming more rational, with developers adopting a more cautious approach. Industry analysts suggest that the land price dropping to 24,500 yuan per square meter will leave ample profit margins for developers. When comparing with nearby projects, the price of low-density stacked villas at China Merchants’ Linyuhu Lake, about 1.4 kilometers southwest, is approximately 67,000 yuan per square meter. The low-density products launched in the future are expected to have strong market competitiveness.

Overall, in this land auction, two parcels were sold at the base price, and one at a low premium rate of 6.57%. Analysts indicate that this demonstrates Shanghai’s 2026 land market opening with a “low premium, stable transactions” trend. The Changqiao parcel in Xuhui District was won by Shanghai Shiyu Chengkai for 2.675 billion yuan, with a floor price of 48,511 yuan per square meter; the Xihongqiao parcel in Qingpu was acquired by Shanghai Zhiyou Real Estate, a subsidiary of Greentown Group, for 2.675 billion yuan, with a premium rate of 6.57%, and a floor price of about 32,000 yuan per square meter. Lu Wenxi, a market analyst at Centaline Shanghai, pointed out that Greentown has been very active in Shanghai land acquisitions, especially securing multiple “land kings,” which positively impacts its market influence and revenue in Shanghai.

Industry insiders note that the low premium transaction pattern is closely related to Shanghai’s land supply policies. Since the beginning of the year, Shanghai has adhered to a “selective and refined” land supply strategy, prioritizing high-quality parcels with advantageous locations, mature supporting facilities, and fewer restrictions. The city also sets reasonable starting prices to reduce land costs for developers and stimulate market participation.

Lu Wenxi believes that since March, the “small spring” in the real estate market has quickly started, but the results of this round of land auctions show that developers are relatively cautious.

Yan Yuejin, deputy director of the Shanghai E-House Research Institute, stated that the overall transaction trend in this land auction clearly reflects the current market focus on “quality over quantity,” with local natural resource departments emphasizing stable market expectations through the supply of high-quality land parcels.