NO.1 Multiple Cities Plan to Acquire Over 160 Parcels of Idle Land for a Total of RMB 35 Billion
Since the beginning of this year, several cities have issued notices soliciting the acquisition of idle land. According to incomplete statistics from the China Index Academy, as of February 11th, cities such as Foshan, Huizhou, Zhuhai, Zhongshan, and Jiangmen have announced plans to acquire over 160 parcels of land, covering an area of over 6.8 million square meters, with a proposed total acquisition price exceeding RMB 35 billion. The statistics show that this round of land acquisitions is not limited to residential land but also includes other types of land such as residential, commercial, office, and industrial land. Residential land accounts for over 50%, commercial and office land accounts for over 30%, and industrial land accounts for over 10%.

Comment: This policy not only helps to revitalize idle land and optimize the land supply structure but also alleviates the financial pressure on real estate enterprises and promotes the stable development of the real estate market. At the same time, it is also an important measure for local governments to effectively use financial funds and promote the rational allocation of land resources in the process of promoting high-quality economic development.

NO.2 Shanghai Sees 16%YoY Growth in New and Second-hand Housing Transaction Area in January
On February 13th, the Shanghai Municipal Development and Reform Commission released data showing that the transaction area of new housing in the city reached 499,000 square meters in January this year, a year-on-year increase of 16%; the transaction area of second-hand housing was 1.403 million square meters, also a 16% year-on-year increase. A total of 16,000 units were transacted that month, remaining above 15,000 units for four consecutive months.

Comment: This growth trend indicates that the Shanghai real estate market has shown strong market vitality and demand at the beginning of the year, which may have a positive impact on the stock prices of real estate-related companies, especially those with a significant business presence in the Shanghai market. In addition, the increased activity in the real estate market is usually closely related to factors such as an improved macroeconomic environment and enhanced consumer confidence. Therefore, this data may also be seen as a signal of a positive macroeconomic outlook.

NO.3 Beijing’s New “Good Housing” Regulations Allow Balconies to be Set According to Needs
On February 13th, the “Technical Guidelines for the Planning and Management of ‘Good Housing’ in the Plain Multi-point Areas of Beijing (Trial)” were released, containing eight items, including setting enclosed or open balconies according to needs, encouraging diverse residential space forms, rationally utilizing the under-building space, encouraging the setup of open covered walkways, increasing shared public spaces for neighbors, utilizing space across urban branch roads, implementing local flexible control over building heights, and encouraging the improvement of building facade quality. Five plain multi-point new towns, including Changping, Shunyi, and Daxing, as well as Tongzhou District, will follow these guidelines. Newly built residential communities and some residential communities that have already obtained land can implement the new regulations regarding balconies, under-building spaces, covered walkways, facades, and height control.