C&D INC.(SH:600153) Xin Lang Cai Jing·2025-06-21 09:23Core Viewpoint - The recent land auction in Shenzhen reflects strong competition among developers, with a notable high premium paid for a small residential plot, indicating confidence in the long-term value of the area and strategic expansion by the winning bidder, Lianfa Group [1][4][10]. Group 1: Land Auction Details - The A817-0619 plot in Longhua District has an area of 10,898.05 square meters and an initial bidding price of 827 million yuan [1][4]. - Lianfa Group won the auction after 65 rounds of bidding, with a final price of 1.212 billion yuan, resulting in a floor price of approximately 44,559 yuan per square meter and a premium rate of 46.6% [1][4][10]. - The plot is characterized as low-density with a floor area ratio of 2.5, allowing for a total planned construction area of 27,200 square meters [4][5]. Group 2: Location and Infrastructure - The plot is strategically located in the core area of Longhua New City, near major transportation links including Shenzhen Metro lines 4 and 6, and surrounded by commercial facilities and quality public resources [7][8]. - The absence of sales price limits and flexible design requirements for housing units make the plot attractive for developers, allowing for the creation of larger, more market-responsive units [7][9]. Group 3: Market Context and Developer Strategy - The recent high premium for the land is part of Lianfa Group's strategic repositioning in response to previous financial challenges, aiming to focus on high-quality projects in core areas [12][14]. - The overall land supply in Shenzhen is increasing significantly, with a projected 468,000 square meters of new residential land planned for 2025, marking a 116% year-on-year increase [20][21]. - The trend of smaller, high-quality land parcels is becoming prevalent in major cities, driven by rapid market changes and the need for quicker development and sales [21][22].