The total price of a case in Huangpu District, Shanghai exceeds 100 100 million land parcels were successfully sold.
On March 28, the official website of the Shanghai Land Market showed that “Units 326-03, 326-04, W11, W13, and W15 along the Huangpu River, Xiaodongmen Street, Huangpu District, Plots 327-01, 327-03, 327-04 and Duojia Road, 326-05, 327-02, 327-05 underground space plots were successfully sold, with a transaction price of 13.50388 billion yuan, and the bidder was Shanghai Nantan Urban Construction Development Co., Ltd. and Shanghai Binhe Urban Construction Development Co., Ltd.
The last time Shanghai’s land sales exceeded 10 billion yuan was in June 2021. At that time, Poly won the N070403 unit in Lingshi Community, Jing’an District with a total price of 10.513 billion yuan. Lot 095a-02, 095b-01.
Tianyancha information shows that the bidder Shanghai Nantan Urban Construction Development Co., Ltd. was established on October 18, 2019, and the major shareholder is Shanghai Bund Urban Renewal Construction Co., Ltd., Shanghai Real Estate Management (Group) Co., Ltd., a subsidiary of Shanghai Real Estate, Shanghai Shangyuan Investment Management Co., Ltd., a subsidiary of Shanghai Automotive Industry Corporation, and Zhaojiong Enterprise Management (Shanghai) Co., Ltd., a subsidiary of Shanghai Jinjiang International. Among them, Shanghai Bund Urban Renewal and Construction Co., Ltd. holds 31% of the shares of Shanghai Bund Urban Construction and Development Co., Ltd. and is its largest shareholder; Shanghai Bund Urban Renewal and Construction Co., Ltd. is also a subsidiary of Shanghai Bund Development and Investment (Group) Co., Ltd. subsidiary, which is affiliated to the SASAC in Huangpu District, Shanghai. The Shanghai Bund and Urban Construction Development Co., Ltd. is held 50% by Shanghai Real Estate Group Co., Ltd. and Shanghai Bund Development and Investment (Group) Co., Ltd. What these holding companies have in common is that they are all state-owned enterprises.
According to the land sale announcement, “Units 326-03, 326-04, 327-01, 327 of W11, W13, W15 along the Huangpu River, Xiaodongmen Street, Huangpu District – Lot 03, 327-04 and Duojia Road, 326-05, 327-02, 327-05 Underground Space Lot” four to the range is east to 326-01, 02, west to Youche Wharf Street, South to Waima Road, north to Zhongshan South Road; the land use is commercial land, office building; the land transfer area is 66,824.8 square meters, and the total starting price is 135.038.8 billion yuan.
According to the data of the Middle Finger Research Institute, the total starting price of this plot is the eighth most expensive plot in Shanghai’s history, and it is also the last one in the Dongjiadu area. “Big Mac” organized a group of commercial plots.
However, judging from the transaction price of the land, the land was finally sold at the reserve price, but the land transfer requirements are also quite strict.
Central China Real Estate Market Analyst Lu Wenxi pointed out that from the perspective of the plot location, it is located in the Dongjiadu area, adjacent to the Greenland Bund Center. The Dongjiadu area has made great efforts to reform the old, and the land use value has been improved while vacating the cage and replacing the birds. From the perspective of regional housing prices, it has already exceeded 100,000 yuan. With the increasing number of new development projects, the property value in the area will be enhanced. Of course, this piece of land is a commercial property and cannot be measured in a residential way. But it is undeniable that even for commercial properties, with the improvement of the environment, the rent will rise steadily and the vacancy rate will remain at a low level.
From the perspective of the land transfer requirements, the entry threshold for the land plot is quite strict. It is mentioned that there are 6 cultural relic protection points and General historic buildings. Cultural relics protection sites are approved for protection and renewal in accordance with relevant regulations and procedures. The general historical building protection and renewal construction area is not less than 9,800 square meters, and the specific protection and renewal method is subject to the plan approved at the planning and management stage of the construction project. The protected/reserved floor area is included in the floor area ratio. The industry believes that there are cultural relic protection requirements for land development, which requires a lot of cost and time in planning and design.
Lu Wenxi mentioned that the entire project has an area of 270,000 square meters, but the developer is required to hold it as a whole. In other words, projects can only get a return on investment through operations. The rental rate of return for commercial projects in Shanghai is around 5%, so it not only requires the developer’s financial strength, but more importantly, the operational capability.
In addition, according to the requirements, the commercial formats are mainly business supporting businesses, such as lifestyle formats, catering, retail, etc., and the introduction of mid-to-high-end brands. The office format must conform to the functional orientation and industrial planning orientation of Huangpu, and focus on the introduction of licensed financial institutions. At the same time, within three months after the transferee signs the land transfer contract, it needs to sign an agreement with the introduced licensed financial institutions (3 or more). Taxes will be transferred to Huangpu District, and the land will be settled within one year after the comprehensive acceptance.