Core Insights - The Guangzhou South Avenue Phase II land plot was publicly auctioned on October 9, 2023, and was won by China Overseas Land & Investment with a total price of 920 million yuan, reflecting a premium rate of 6.98% and a floor price of approximately 15,285 yuan per square meter [1] - The land plot is strategically located near major roads and commercial areas, with a total area of 34,177.93 square meters, including residential, commercial, and service facilities [1] - The floor price of the Phase II plot is significantly lower than the Phase I plot sold three years ago, which had a floor price of 48,395 yuan per square meter, indicating a notable change in market conditions [1] Market Analysis - According to industry expert Xiao Wenxiao from CRIC, the floor price of the Phase II plot aligns with the current market conditions in the Haizhu District, where the average transaction price for new residential properties has decreased from 87,601 yuan per square meter in 2022 to 67,414 yuan per square meter in 2023, a drop of nearly 20,000 yuan [2] - In the first nine months of 2023, Guangzhou has seen a significant increase in land transactions, with 22 residential land plots sold, totaling a construction area of 1.1663 million square meters and a total transaction value of approximately 21.2 billion yuan, compared to 15 plots and 1.7924 million square meters in the same period last year [2]

Group 1 - China Overseas Land & Investment (中海) acquired the Guangzhou Avenue South Phase II land parcel for 920 million yuan, with a nominal floor price of approximately 15,285 yuan per square meter and a premium rate of 7% [1] - The total land area is about 34,200 square meters, with a total construction area of approximately 60,000 square meters and a plot ratio of 2.9 [1] - This is the first land acquisition by China Overseas in the public market of Guangzhou for 2025 [1] Group 2 - The land parcel requires the construction of 33,079 square meters of commercial space, 2,700 square meters of service facilities, and a 9-class kindergarten, resulting in an effective residential floor price exceeding 40,000 yuan per square meter [3] - The location is strategically positioned near major roads and metro lines, making it a prime area within the Kecun business district [3] - The surrounding area has challenges, including urban villages and traffic congestion during peak hours [5] Group 3 - The land auction attracted attention due to the competition between China Overseas and Poly Real Estate, with only these two state-owned enterprises participating [5] - The previous land auction in 2022 saw Poly win against China Overseas, making this acquisition a significant comeback for China Overseas [5] - The starting price of the land appeared lower, but the high requirements for additional construction and low residential proportion will test the developers' comprehensive development capabilities and financial strength [5]