China Developers Buy Land at 20% Premium in Bet on Market Bottom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2025
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Should l Buy ?
Source: Bloomberg
State-backed developers are resuming land purchases: After the Chinese government eased home price limits, state-backed developers have begun buying land at a premium, with 37% of transactions this year selling for over 20% above asking prices, compared to just 14% last year.
Market stabilization efforts: The renewed interest in land sales indicates a potential rebound in China's housing market, as local governments relax terms and encourage purchases to alleviate financial pressures from declining land sales.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
