Real Estate
China Developers Buy Land at 20% Premium in Bet on Market Bottom
- Firms snap up land parcels for 20% above the asking price
- Governments spark deals by scrapping limits on home value
Chinese state-backed developers are starting to buy land at a premium again after the government eased limits on home prices to revive a slumping market that’s been a drag on the economy for more than four years.
The number of land parcels that sold for at least 20% above the asking price accounted for 37% of deals this year, according to a Bloomberg analysis of transactions worth at least 1 billion yuan ($138 million) tracked by China Index Academy. That compares with just 14% for all of last year and 4.6% in 2023.
