Core Insights - The land auction market in first and second-tier cities has shown significant warming in the first half of 2025, with both transaction area and land transfer fees increasing year-on-year [1][5] - Despite a decrease in the total area of residential land transactions, the land transfer fees have increased by over 27% year-on-year, indicating a concentration of investment in core cities [1][2] Summary by Sections Land Transfer Fees - In the first half of 2025, the total land transfer fees for various types of land in 300 cities reached 1.2 trillion yuan, a year-on-year increase of 11.9% [2] - Residential land transfer fees amounted to 860 billion yuan, reflecting a year-on-year growth of 27.5% [2] Transaction Area and Premium Rates - The average premium rate for residential land in 300 cities was 10.2%, an increase of 6 percentage points compared to the same period last year [3] - The average premium rate for operational land rose to 9.2%, up by 4.8 percentage points year-on-year [3] Market Dynamics - The top 20 cities accounted for approximately 68% of the total residential land transfer fees, with cities like Hangzhou and Beijing exceeding 100 billion yuan in fees [4][5] - In the first half of 2025, first-tier cities saw a 20.9% increase in residential land transaction area and a 49.5% increase in land transfer fees, while second-tier cities experienced an 18.3% increase in area and a 43.5% increase in fees [5] Regional Variations - The land auction market has become increasingly polarized, with first and second-tier cities showing recovery in transaction area and fees, while third and fourth-tier cities experienced declines [5][6] - Shanghai, Hangzhou, and Chengdu exhibited high auction activity, with average premium rates exceeding 20%, and Hangzhou reaching 35.5% [6]