As the new spring begins, Beijing’s land auction market has witnessed a series of small upswings.

On February 11th, a land parcel in the Sanjianfang Group 1 in Chaoyang District, Beijing, was successfully auctioned off. After more than a hundred rounds of bidding, it was jointly won by Poly and Sinochem Group (Jinmei), with a total transaction price of RMB 8.7295 billion, a premium rate of 10.5%, and a transaction price per square meter of approximately RMB 52,000 per plot ratio.

In terms of the bidding companies, the land auction attracted bidders such as China Overseas Property, China Merchants, and the Poly-Sinochem consortium. However, the actual bidding process mainly involved competition between China Overseas Property and the Poly-Sinochem consortium, with the latter being more aggressive in bidding.

Ultimately, Poly and Sinochem jointly secured a plot in Beijing. This land parcel, which did not have a land price cap or a sales guidance price, was auctioned off at a premium rate exceeding 10%, adding a touch of warmth to Beijing’s land auction market at the beginning of the year.

In terms of land use, this is the third time that Chaoyang District has sold land in a combined package format. The previous two occasions were for the “Jiuxianqiao + Qianweigou + Zhongguancun Chaoyang Park North Area” combined land parcel and the “Jiuxianqiao + Xiaohongmen + Shibalidian” combined land parcel.

The current group of land parcels is divided into three smaller plots, including an R2 residential land parcel (1205-0007), another R2 residential land parcel (1202-0006), and a kindergarten education land parcel (1202-0007), with a total land area of approximately 69,000 square meters.

To reduce the operational costs for developers acquiring the land, adjustments were made to the regulations for this combined land parcel. For example, the plot ratio of land parcel 0007 was reduced from 2.8 to 2.5, and the height control for land parcel 1202-0006 was adjusted from 60 meters to 60 meters (with some areas at 80 meters). Additionally, a previously included multi-functional land parcel was removed to enhance the enthusiasm of companies to acquire the land and improve the residential comfort in the later stages.

Zhang Kai, the head of land market research at the China Index Academy, stated that the area has superior transportation and supporting facilities, with Chaoyang Joy City and Changying Longfor Paradise Walk as the two major commercial districts nearby. In terms of transportation, the southern land parcels 0006 and 0007 are adjacent to Chaoyang North Road and close to Dalianpo Station on Line 6, while land parcel 0007 in Area D is approximately 700 meters away from Line 6.

However, Zhang Kai cautioned that there is a cemetery located in the northwest corner of land parcel 0007 in Area D, namely the existing stele of Tong’s wife, the wife of Shi Wensheng, which cannot be moved and must be preserved in its original location. This is similar to the situation with the family cemetery altar in the Fengtai Wanquansi land parcel previously acquired by China Overseas Property, and developers will need to address such issues accordingly in the later stages.

In terms of nearby projects on sale, there have been no new residential projects launched in the vicinity in the past year. “Poly only acquired one land parcel in Beijing in 2024, namely the Jiahua Tianjun project in Haidian District, with a total price of RMB 8.9 billion. Poly’s decision to replenish its land bank at this time is well-timed and strategically necessary,” Zhang Kai commented on Poly’s joint land acquisition with Sinochem.