Core Insights - The recent land auction in Shanghai on October 20, 2025, saw significant interest, particularly in the Xuhui and Jing'an districts, with both areas achieving premium sales [1][3] - The total starting price for the six land parcels auctioned was approximately 18.495 billion yuan, indicating a competitive market environment [1][4] Group 1: Auction Results - The Jing'an district's C070102 unit 32-04 and 32-08 underground space was won by a consortium led by China Merchants Shekou for 7.73715 billion yuan, with a premium rate of about 9.03% after 52 bidding rounds [1][2] - China Overseas Land & Investment secured the Xuhui district WS5 unit 188N-I-21 land for 4.465 billion yuan, achieving a record floor price of approximately 148,503 yuan per square meter [3][4] - The Yangpu district N090602 unit D1-7 was acquired by Poly Real Estate for 2.6162 billion yuan, with a premium rate of approximately 14.69% after 43 rounds of bidding [3] Group 2: Market Trends - The auction highlighted a clear market differentiation, with city center parcels attracting premiums while suburban lands sold at base prices, indicating varying demand levels [4][5] - The overall premium rates were relatively low, with the highest being 14.69%, suggesting a more conservative approach from developers compared to earlier in the year [4][5] - State-owned and central enterprises continue to dominate the land acquisition landscape, reflecting their strong financial capabilities in a competitive market [4][5]

Core Viewpoint - The Shenzhen land market is heating up with an accelerated supply of residential land, but the new housing market is expected to face significant downward pressure in the second half of the year, leading to potential increases in housing policies [1][4]. Group 1: Land Auction Highlights - On July 7, a residential land plot in Longhua, Shenzhen, was sold for 2.37 billion yuan after 108 rounds of bidding, with a final floor price of approximately 38,795.22 yuan per square meter, reflecting a premium rate of 40.7% [2]. - On June 30, two new residential land plots were listed in Shenzhen, covering a total area of 41,167.78 square meters with a combined starting price of 2.996 billion yuan, both having a plot ratio of 3.1 [2]. - On June 19, a land plot in Longhua was sold for 1.212 billion yuan, achieving a premium rate of 46.55% over its starting price of 827 million yuan, with a plot ratio of 2.5 [3]. Group 2: Market Trends and Policy Outlook - The Shenzhen land market saw a 40.9% decrease in transaction area in the first half of the year compared to the same period last year, while transaction value increased by 11.8%, primarily due to a rise in residential land transactions [4]. - The number of land transactions in Shenzhen decreased to 15 in the first half of the year, down by 8 from the previous year, with industrial land being the most transacted type [4]. - The premium rates for residential land have increased following the removal of a 15% price cap in 2024, with a notable premium rate of 70.4% for a plot in Longgang, marking the highest in nearly three years [4].