Developers Remain Cautious on Land
China's key real estate developers collectively acquired land totalling a value that was 27.6% lower year-on-year in the January–July 2026 period, according to industry tracking data. However, the decline has been narrowing for five consecutive months, suggesting that the worst of the land market contraction may be behind the sector.
Key Trends
- Decline narrowing: The 27.6% contraction represents a gradual improvement from steeper falls in the first quarter
- Headliner divergence: State-owned developers remain more active than private peers in acquiring premium urban land
- Core cities: Land parcels in prime urban locations continue to attract competitive bidding, even as overall volume contracts
- Private developer sentiment: Improving modestly as policy support filters through
Policy Context
The land market weakness is linked to ongoing developer deleveraging, limited access to financing and uncertainty about the pace of property market recovery. Ministry of Natural Resources guidelines restricting new commercial real estate land supply have further compressed the volume of available land. As policy support for the sector stabilises, analysts expect land acquisition activity to gradually normalise, particularly in high-demand metropolitan areas.