Core Viewpoint - The land market continues to control supply and reduce inventory, with the proportion of quality residential land supply expected to increase [1][6]. Supply and Demand - As of May 25, 2025, the land supply area is 48.13 million square meters, a year-on-year decrease of 19.3%. The transaction area is 28.26 million square meters, down 18% year-on-year, while the transaction amount is 80.7 billion yuan, up 12% year-on-year [4][10][16]. - The average premium rate for land transactions has decreased to 7.2%, with first and second-tier cities maintaining heat in land auctions, averaging a premium rate of 10% [5][21]. - First and second-tier cities saw transaction volume and price increase year-on-year, while third and fourth-tier cities experienced a decline in both [5][17]. Market Heat - The average premium rate in May is 7.2%, continuing a downward trend. However, first and second-tier cities maintain auction heat, with average premium rates still above 10% [21][20]. - High-quality land transactions have driven the increase in transaction amounts, indicating a strategy of controlling quantity while improving quality [6][16]. Future Outlook - The land market is expected to continue controlling supply and reducing inventory, with an increase in the supply of quality residential land. The ongoing urban renewal efforts and government support are anticipated to bring more quality land supply in 2025 [6][8]. - The differentiation among cities is significant, with first and second-tier cities showing positive growth in transaction scale, while third and fourth-tier cities continue to see a contraction in land auction scale [17][21]. Key Land Transactions - In May, the top land transactions were concentrated in Shanghai and Beijing, with significant premium rates observed in high-demand areas. For instance, the highest transaction price in Beijing's Haidian District reached 4.5 billion yuan, with a premium rate of 12% [28][32]. - The average floor price for land transactions in major cities remains high, with some areas exceeding 80,000 yuan per square meter [32][34].