Winning two land plots within 5 days! Poly Developments acquires land in Hangzhou at a high premium, what does this signal?

On March 10, a residential land parcel in Hangzhou was auctioned. After 23 rounds of bidding, Poly Developments won with a total price of 1.586 billion yuan, achieving a floor price of 38,084 yuan/m², with a premium rate of 16.11%.

This marks Poly Developments’ second high-premium land acquisition in Hangzhou within five days, following a purchase with over 50% premium on March 6.

Industry insiders believe that Poly Developments’ consecutive acquisitions of two core district residential parcels in Hangzhou within such a short period reflect a clear strategic intent. The market’s “scarce but refined” land supply strategy in Hangzhou aligns with developers’ “steady and precise” investment approach. The scarcity and risk resistance of core area assets are increasingly prominent in the current market.

On the same day, Chengdu also saw two residential land parcels auctioned. One was sold with over 10% premium, and the other at base price, totaling 412 million yuan.

Hangzhou Residential Land Achieves 16.11% Premium

On March 10, a residential land parcel in the core unit of Century City in Xiaoshan District, Hangzhou, was auctioned. The land area was 23,133 m², with a planned construction area of 41,639.4 m², and a floor area ratio of 1.8. The starting price was 1.366 billion yuan, with an initial floor price of 32,800 yuan/m².

After 23 bidding rounds, Poly Developments secured the land with a total price of 1.586 billion yuan, a floor price of 38,084 yuan/m², and a premium rate of 16.11%.

Gao Yuansheng, Executive Vice President of the East China Region at China Index Academy, noted that compared to the residential land in Qianjiang Century City released in 2025, the current transaction shows a decline in market heat. Since Q4 2025, the market has slowed, and developers have become more cautious in land acquisition. The land parcel’s elongated rectangular shape and noise from nearby airport expressway and Boao Road have limited the premium rate, but the final floor price still reached 38,000 yuan/m², higher than the surrounding Greentown Lixiangting project.

Gao believes the high land price is due to several reasons:

1. Scarcity of land with low-density improvement attributes. The plot’s floor area ratio is only 1.8, the lowest among recent residential land in Qianjiang Century City, giving it an inherent advantage to develop rare low-density improved products. It is highly likely to be planned as a combination of “garden-style houses + small high-rise,” creating differentiated product offerings within the area.

2. Well-developed supporting facilities and proximity to the Olympic Sports Center core area. Although located in the southern part of Century City, the plot is only about 500 meters from the “Aoying Mingcui” Olympic Sports red project and about 1.7 km from Lotus Bowl, providing convenient access to high-level amenities. Transportation-wise, it is about 400 meters from Xingyi Station on Metro Line 7, with future plans for Line 15’s Feng’er Station. Commercially, it is across from Jindi T-ONE Mall and within 2 km of Olympic Sports Impression City. Educationally, it is expected to be within the catchment area of Chongwen Century City Experimental School.

3. Focused corporate strategy and strong regional demand. The robust sales performance of projects within the Olympic Sports and Century City areas provides direct market confidence. Poly Developments’ flagship project, Poly Tianjun, in Century City has been consistently popular since its launch, offering precise market insights and customer understanding. This enables the company to re-invest in the same value zone, further consolidating its brand and market share. The low-density attribute of this land parcel also offers ample premium space for developing differentiated improvement products.

It is noteworthy that on March 6, Hangzhou hosted its first宅地 (residential land) auction after the Spring Festival, with only one parcel in Shangcheng District. After 109 bidding rounds, Poly Developments won with a total price of 3.224 billion yuan, a floor price of 44,985 yuan/m², and a premium rate of 51.08%.

Gao believes that Poly Developments’ acquisition of two core district residential parcels in Hangzhou within five days demonstrates a clear strategic intent. The 16.11% premium for the Century City low-density parcel reflects the market value of scarce planning indicators and highlights the current extreme focus of developers on investment and “certainty.” The “scarce but refined” land supply strategy in Hangzhou aligns with developers’ “steady and precise” investment approach, emphasizing the increasing value and risk resistance of core assets in today’s market.

Chengdu Residential Land Achieves Over 10% Premium

On March 10, two residential land parcels in Xindu District, Chengdu, were auctioned. One was sold with over 10% premium, and the other at base price, totaling 412 million yuan.

The Xindu New City residential parcel covers 22,951.7 m² (about 34.43 acres), with a planned construction area of 45,903 m² and a floor area ratio of 2. The starting floor price was 5,400 yuan/m², equivalent to an initial price of 248 million yuan. Chengdu Huari Chenzhi Real Estate Co., Ltd. (Zhongyu Qiyuan) won the parcel with a floor price of 5,950 yuan/m², totaling approximately 273 million yuan, with a premium rate of 10.19%.

The He River section residential land is a mixed commercial and service land with a land area of 12,623.63 m² (about 18.94 acres), a planned construction area of 31,559 m² (with commercial proportion of 30-40%), and a floor area ratio of 2.5. The starting floor price was 4,400 yuan/m², with an initial price of 139 million yuan. Chengdu Xindu Kexin Technology Co., Ltd. won the parcel at the base price of 4,400 yuan/m², totaling 139 million yuan.