China Developers Buy Land at 20% Premium in Bet on Market Bottom
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2025
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Source: Bloomberg
State-backed developers are resuming land purchases: After the Chinese government eased home price limits, state-backed developers have begun buying land at a premium, with 37% of transactions this year selling for over 20% above asking prices, compared to just 14% last year.
Market stabilization efforts: The renewed interest in land sales indicates a potential rebound in China's housing market, as local governments relax terms and encourage purchases to alleviate financial pressures from declining land sales.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
