{"id":40183,"date":"2017-01-10T16:09:17","date_gmt":"2017-01-10T09:09:17","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/chinas-cooling-measures-mean-smaller-developers-dont-stand-a-chance\/"},"modified":"2017-01-10T16:13:20","modified_gmt":"2017-01-10T09:13:20","slug":"chinas-cooling-measures-mean-smaller-developers-dont-stand-a-chance","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chinas-cooling-measures-mean-smaller-developers-dont-stand-a-chance\/","title":{"rendered":"China\u2019s cooling measures mean smaller developers don\u2019t stand a chance"},"content":{"rendered":"


\nThe rich get richer
\nParcels of land on the outskirts of Shanghai are being acquired at record-low prices. redstone\/Shutterstock
\nPlots of land in several mainland China cities are rapidly being snapped up by the country\u2019s leading developers at knock-down prices, with cooling measures meaning smaller firms scarcely get a look in.
\nNew policies introduced in October mean that developers may only bid for land with cash \u2013 not borrowed money. This gives cash-rich players a huge advantage over their smaller counterparts, South China Morning Post reports.
\nSubsequently, with fewer developers bidding, there has been a heavy fall in premiums being paid for plots in large cities.
\nMore: What impact might China\u2019s capital controls have on global property?
\nLast week saw the years first public land auction in Shanghai, where Country Garden acquired a plot in Baoshan, on the city outskirts. The 89,200 sqm plot went for 16,400 yuan (USD2,368) per sqm, just 3.17 percent premium over the starting price.
\nIn stark contrast to this figure, seven months ago, Cinda Real Estate paid a 303 percent premium for a plot, also in Baoshan. In July and August, several developers bid for plots of land in this area, none of which paid less than 100 percent premium.
\nWhile other factors may have caused a drop in premiums, the new restrictions on leveraged bidding are said to account for such a remarkable change.
\nRead next: China had a good end of year despite property investment despite curbs
\n
\nSource : property-report.com
\nRead more…China\u2019s cooling measures mean smaller developers don\u2019t stand a chance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The rich get richer Parcels of land on the outskirts of Shanghai are being acquired...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-40183","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-as7","jetpack-related-posts":[{"id":96950,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hong-kong-listed-chinese-developers-post-strong-profits-so-why-arent-investors-on-a-buying-binge\/","url_meta":{"origin":40183,"position":0},"title":"Hong Kong-listed Chinese developers post strong profits. So why aren\u2019t investors on a buying binge?","date":"August 30, 2018","format":false,"excerpt":"\r China\u2019s Hong Kong-listed developers have been reporting strong half-year profits. But investors are looking ahead to see heavy weights on what has been a booming sector. The chief driver of Chinese developers\u2019 earnings \u2013 cheap land and rising selling prices \u2013 may all but be disappearing, as expensive plots\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11392,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/property-analysts-flag-concern-as-developers-fuel-buying-frenzy-for-land-sites-in-chinas-second-tier-cities\/","url_meta":{"origin":40183,"position":1},"title":"Property analysts flag concern as developers fuel buying frenzy for land sites in China\u2019s second-tier cities","date":"April 26, 2016","format":false,"excerpt":"\r Cash-rich mainland Chinese property developers are paying top dollar for selected building sites in second-tier cites, in an effort to build up their land banks at a time when Shanghai and other leading cities close the taps on new supply.\r \r Source : South China Morning Post\r Read more...Property\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":55805,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/how-chinas-most-contested-land-auction-drove-developers-into-a-frenzy\/","url_meta":{"origin":40183,"position":2},"title":"How China\u2019s most contested land auction drove developers into a frenzy","date":"May 24, 2017","format":false,"excerpt":"\r Luck mattered more than money for hundreds of property developers who bid on eight plots of land put up for auction by a local government, in a frenzied scene in China\u2019s real estate market. At least 400 developers from across the country jammed into a grand theatre in Jiaxing,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":32849,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mainland-developers-see-the-value-of-teamwork-in-tougher-market-conditions\/","url_meta":{"origin":40183,"position":3},"title":"Mainland developers see the value of teamwork in tougher market conditions","date":"November 3, 2016","format":false,"excerpt":"\r Chinese builders are teaming up with each other to develop land they paid record premiums for at the market\u2019s peak, as they try to withstand tightening liquidity and a dimmer outlook in the wake of property cooling measures. At least eight major developers have partnered with their peers to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":44906,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/shanghai-beijing-land-markets-cool-as-funding-constraints-squeeze-developers\/","url_meta":{"origin":40183,"position":4},"title":"Shanghai, Beijing land markets cool as funding constraints squeeze developers","date":"February 21, 2017","format":false,"excerpt":"\r A dramatic fall in the premiums being paid for land in Beijing and Shanghai suggests government efforts to cool the market by placing tough financing constraints on developers are having a profound effect. Five parcels of land in the two cities sold at auction last week at premiums that\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37912,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/theme-parks-pension-homes-and-malls-china-developers-turn-to-niche-projects-as-cooling-measures-dim-outlook\/","url_meta":{"origin":40183,"position":5},"title":"Theme parks, pension homes and malls: China developers turn to niche projects as cooling measures dim outlook","date":"December 13, 2016","format":false,"excerpt":"\r Amid heightened government controls on the property market and a dimmer outlook for the sector next year, talk of \u201ctransition\u201d and \u201cdifferentiation\u201d has resurfaced among China\u2019s real estate developers. 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