by YANG Bingke

Hangzhou raised 116.01 billion yuan from residential land auctions in the first half of 2025, the highest among Chinese cities and nearly double the sum recorded a year earlier, according to data from Keyland Research Institute, part of Hangzhou Kaibao Networks. The surge culminated on June 27, when the city sold six plots in coveted districts including Qianjiang Century City and Future Sci-Tech City, generating 15.115 billion yuan.

Three parcels set new price records for their areas. A Qianjiang Century City plot attracted 98 bidding rounds and sold to local developer Jindi United Holdings Group for 5.578 billion yuan, with a premium of 21%. Jindi, founded in 1992 by LU Sikan and KONG Lielan, has focused mostly on suburban projects but now plans to develop its first core project in the district.

While competition for prime locations remained fierce, developers showed caution elsewhere. On June 24, three sites in outer districts all sold at reserve prices, reinforcing what Zhejiang Daily Media Real Estate Research Institute described as an "internal heat but external chill."

Analysts noted that developers increasingly favor "adjacent acquisitions," buying land near existing projects to lower marketing costs and hedge against market uncertainty. ZHENG Qingqing, a researcher at Zhejiang Daily Media, said this strategy helps preserve pricing systems and control risks as Hangzhou's second-hand housing market weakens. In May, monthly resale transactions slipped to about 7,700 units, with further declines expected in June amid muted demand and an uncertain economic backdrop.

The outlook for the second half remains mixed. Some firms expect core areas to keep attracting bids, while others anticipate a cooling in high-turnover strategies if authorities advance pilot programs for selling completed homes.

Despite the caution, Hangzhou stood out nationwide. Among the top 20 land buyers by value, nine were private companies and eleven were state-owned enterprises, with SOEs accounting for over half of the total spending.