Core Insights - China State Construction Engineering Corporation (CSCEC) continues to strengthen its presence in the Beijing market by acquiring a land parcel in Haidian during a recent land auction [1][4] - The auction on June 5 involved four residential land parcels in Haidian, Shijingshan, and Changping, generating a total revenue of 13.06 billion yuan [1] - The most notable land parcels were the "Twin Stars" in Baoshan, which attracted five bidders, ultimately won by CSCEC and Jinyu for a total price of 6.142 billion yuan [1][2] Land Acquisition Details - The Baoshan 0016 parcel covers 2.4 hectares with a planned above-ground construction area of 50,400 square meters, including approximately 48,900 square meters for residential use, and was acquired by CSCEC for 2.778 billion yuan, reflecting a premium rate of 1.76% [2] - The Baoshan 0017 parcel spans 2.85 hectares with a total construction area of 60,000 square meters, sold to Jinyu for 3.364 billion yuan, with a premium rate of 1.48% [2] - The location of the Baoshan parcels is strategically positioned between the Fourth and Fifth Ring Roads, providing convenient access to key areas such as Financial Street and Zhongguancun [2][3] Market Context and Competition - The auction saw reduced competition, with only five bidders participating, attributed to some companies having recently acquired land and facing financial pressure [2][3] - The Baoshan parcels' lower premium rates and floor prices compared to the previous half-month's auction of the Hanbi Store parcels indicate a cooling market [3] - The Baoshan parcels face competition from nearby projects, including those in Shijingshan, which have more established commercial and educational facilities [3][6] Future Development and Challenges - The Baoshan project includes plans for a nine-year integrated school, expected to start construction in October 2026, enhancing the area's educational offerings [3][4] - The commercial infrastructure is currently reliant on existing resources along Fushi Road, with potential for improvement in large-scale commercial facilities [3] - The development of the Baoshan parcels will need to address the competition from the Hanbi Store project and other high-end projects in Shijingshan, as well as the gradual realization of supporting facilities [4][6]