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Significant Decline in China's Land Sales in First Half of 2024
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Land sales in China dropped 35% in the first half of 2024. Residential land sales fell 42% in value, totaling 669.4 billion yuan. This marks a significant shift, with residential land transactions dropping from 82% to 64% of total land sales since 2011.
Local governments heavily rely on land auction revenue for expenses like education and affordable housing. The decline forces them to depend more on central government transfer payments. These payments, initially a stopgap, are now a crucial part of local finances.
Guangdong, Ningxia, and Tianjin saw the steepest falls in land revenue, dropping 64%, 62%, and 60% respectively. State-owned enterprises now dominate land auctions, accounting for 80% of acquisitions.
Developers are retreating from third- and fourth-tier cities, focusing on first- and second-tier cities. However, even these markets are losing appeal. Beijing and Shanghai saw land revenue declines of 16% and 19%. Guangzhou sold only four residential lots.
The real estate crisis is deepening. Top developers avoided buying land in 12 provinces in the first half of 2024. The shift in land sales dynamics reflects broader economic challenges and changes in the real estate market.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 6 | Comprehensive reporting with in-depth analysis. |
| Social Impact | 5 | Significantly influences public opinion on local finances. |
| Credibility | 5 | Solid evidence from authoritative sources. |
| Potential | 5 | High potential to trigger larger economic changes. |
| Practicality | 4 | Highly practical, directly applicable to real problems. |
| Entertainment Value | 2 | Slightly monotonous, few entertaining elements. |