Shenzhen Breaks Land Auction Price Records Again

June 8 — A first-tier Chinese city experienced a historic land sale at its most recent auction. The rights to develop a plot located in the heart of the Nanshan district were sold for CNY5.8 billion (USD850 million) on June 5, marking a new record. The price reached CNY108,600 (USD16,009) per square meter. Poly Property Group emerged as the winner after 290 rounds of bidding, paying a 151 percent premium.

The earlier record for land price was CNY84,200 (USD12,412) per square meter, set last year.

This unprecedented price is expected to significantly raise land values in the surrounding Nanshan area, bolstering market expectations for high-end property values in the Shenzhen Bay region, according to Sun Hongmei, a senior analyst at China Index Academy’s local branch.

The parcel covers approximately 53,100 square meters, with a specified plot ratio below 2.9 and a maximum building height under 100 meters. This marks a shift from the typically high plot ratios seen in residential developments in the area.

“This is the first low-density residential land to be publicly auctioned in the Shenzhen Hi-Tech Industrial Park in nearly ten years,” Sun explained. “It will cater to the demand for improved living conditions among tens of thousands of high-net-worth individuals employed in the high-tech sector, making it an exceptionally scarce resource.”

He added, “Introducing this project to the market will help address the shortage of low-density residential properties in the region.”

The significant premium is expected to generate increased interest in two premium residential plots in Shenzhen’s Qianhai and Baoan districts, both scheduled for auctions later this month. This development will reinforce investors’ confidence in the resilience of high-quality assets in the city’s core areas and serve as a symbolic indicator of the local land market’s strengthening trend this year, Sun noted.

Sun highlighted that the record-breaking price reflects the unique dynamics of Shenzhen’s land market. Competition for low-density residential land in the city’s core has become intensely fierce, while demand for standard plots on the outskirts remains relatively subdued.