Volume Down, Value Resilient
China's urban land transaction area fell approximately 24% year-on-year in the first half of 2026, reflecting continued caution among private real estate developers amid ongoing sector deleveraging. However, the average transaction price per square metre held relatively stable, indicating that quality premium land in tier-1 and strong tier-2 cities is still actively traded — just in lower volumes.
State Enterprises Dominate Land Purchases
State-owned enterprises (SOEs) and state-controlled entities accounted for 71% of total land transaction value in H1 2026, up from 54% in the same period of 2023. This consolidation reflects both private developers' limited appetite for new land and government-directed acquisition to support urban renewal and affordable housing projects.
Land Transaction Patterns
| City Tier | Volume Change H1 2026 | Avg. Price Change |
|---|---|---|
| Tier-1 (Beijing, Shanghai, etc.) | -12% | +3% |
| Strong Tier-2 (Nanjing, Hangzhou) | -19% | +1% |
| Other Tier-2 and Tier-3 | -31% | -4% |
Urban Renewal as a Demand Catalyst
Beijing's 2026–2030 State Council Urban Renewal Plan is redirecting land demand. The plan targets the redevelopment of 100,000 urban villages and the renovation of 35 million units of old residential housing, creating new plot-ratio land in city centres. This structural shift is absorbing land demand that would otherwise flow from private developers, sustaining transaction values despite the volume decline.