Hangzhou Post-Holiday Land Auction Kicks Off with a Hot Start Poly Developments Secures Land at a 51% Premium

The Paper Shell Finance News (Reporter Yuan Xiuli) reported that on March 6, Hangzhou held its first land auction after the Spring Festival, marking the start of the spring market with a “land grabbing battle.” The land parcel SC080201-27 in Chengdong New City, Shangcheng District, was auctioned after 109 rounds of fierce competition. It was ultimately acquired by Zhejiang Poly City Development Co., Ltd., a subsidiary of Poly Developments, for a total of 3.224 billion yuan, with a floor price of 44,985 yuan per square meter, a premium rate of 51.08%, setting a new record for floor price in Chengdong New City.

According to Gao Yuansheng, Executive Vice President of the East China Region at Zhongzhi Research Institute, the primary reason for the intense bidding was the land’s excellent ecological resources, including south-facing views overlooking the Beijing-Hangzhou Grand Canal and proximity to Mai Miao Port, offering a unique water landscape.

Additionally, the land was originally designated for commercial and office use. After planning adjustments, the floor area ratio was reduced from 3.0 to 2.2, and its designation was changed to purely residential. Plus, it is only 200 meters from the Xinfeng Station on Metro Line 4, with comprehensive surrounding amenities, making it suitable for developing high-end residential projects in the city core.

The high enthusiasm for this land auction is driven by sustained strong market demand within the area. To the north of the site is the “Cuiyin Jianglin” project, acquired by Greentown in March 2025, which has been continuously popular since its launch last September.

Notably, the floor price of this transaction increased by approximately 11.8% compared to the neighboring Cuiyin Jianglin project. This reflects developers’ recognition of the premium for scarce landscape resources in the core area. Furthermore, the land has been included in Hangzhou’s pilot project for improving residential quality, with future potential to develop a differentiated competitive edge through a “high-rise + low-density” combination strategy.

Gao Yuansheng believes that Poly Developments has been steadily investing in Hangzhou in recent years. The recent high premium to reinforce its presence in the core of Chengdong New City indicates confidence in Hangzhou’s high-end improvement market. Additionally, the land market in Hangzhou started with a premium rate of over 50%, which may further boost market confidence.

It is also reported that on the same day, Hangzhou listed three high-quality residential land parcels in Binjiang, Yuhang, and Qiantang districts, with a total starting price of 4.48 billion yuan, scheduled for auction on April 8. Whether the market enthusiasm can continue remains to be seen.

Editor: Yang Juanjuan

Proofreader: Liu Baoqing