Midea Real Estate acquires land in Yiwu with a premium of 3.1 billion and its status in the Yangtze River Delta

Net Between high gross profit and fast turnover, every real estate company has its own choice. Midea Real Estate is a typical fast turnover company.

Midea Real Estate, which repeatedly emphasized at the interim results meeting that there is no need to acquire land at high prices, has grabbed a high-premium land parcel in the Yangtze River Delta.

On January 25, Ningbo Meishan Midea Real Estate Development Co., Ltd., after 69 rounds of bidding, won the land parcel on the north side of the intersection of Guomao Avenue and Airport Road, Beiyuan Street, Yiwu, Jinhua, Zhejiang, with a total price of 3.118 billion yuan. 1. The transaction floor price was 25,009 yuan/square meter, with a premium rate of 77.34%.

The transaction floor price of this land is 25,009 yuan/square meter, setting the second highest unit price in Yiwu in recent years, second only to the Beiyuan Street project that Zhongan Group won for 1.62 billion in September last year. The floor price of the Hutang West plot has exceeded 30,000 yuan/square meter.

Between floor price and selling price

According to new media, the land sold by Midea has an area of ??58,000 square meters, a floor area ratio of 2.15, and a construction area of ??124,700 square meters. Covers land use requirements such as residential, commercial, and resettlement housing. Since it is relatively close to the airport, the building height of this plot is limited to 70 meters and must meet the airport clearance requirements.

The overall plot is divided into 3 parts. Among them, S1 shall not exceed 3 floors and the commercial building area is 2200-4000 square meters; the S2 plot shall have no less than 6 floors and the building The height shall not exceed 27 meters, and the commercial building area is 800-1,000 square meters; S3 is a residential plot, and the commercial building area is 1,000-1,500 square meters.

More than 6 months ago, Midea Real Estate just purchased a commercial and residential property in Choujiang Street, Yiwu through the same vest company for a total price of 2.238 billion yuan. The floor price was 12,155 yuan/square meter, a premium. The rate is 51.41%, the project is named "Yunchao Mansion", and the average price on the market is about 23,000 yuan/square meter.

It is reported that the plot of land acquired by Midea Real Estate this time is within the radiation range of many business districts such as Tai Department Store and Yiwu Zhixin. It is surrounded by many primary and secondary schools and has a strong residential atmosphere.

An industry insider told the new media that Midea’s land parcel is in a good location. Whether it is transportation, commercial facilities, educational resources, etc., it is a rare land parcel in the region, so the competition is fierce.

It is worth noting that there is a project for sale in the southeast direction of the land, Wangchen Mansion. The two sides are only separated by a road. It has now entered the last phase, and the average sales price is less than 30,000 yuan/ square meters, jointly developed by Small Commodity City Group and Century Jinyuan.

The floor price of Wangchen Mansion when it first acquired the land was only about 13,500 yuan/square meter. It was won by Small Commodity City in September 2019, with a total price of 3.07 billion yuan.

In other words, in less than a year and a half, when the transfer requirements of the two land parcels are close to each other, the land price in Yiwu Beiyuan area has almost doubled.

Today, the difference between the sales price and the land purchase price is less than 5,000 yuan/square meter, which is definitely not a price acceptable to Midea Real Estate. In Yiwu, where the real estate market is not so tightly regulated, the real estate market may face further problems. of rise.

According to the past land acquisition experience of real estate companies, only when the market sales price is close to 37,000 yuan/square meter, the land can release reasonable profits, which also means that compared with the current situation, more than 2 house prices rose.

The Yangtze River Delta is the most heavily invested

Midea Real Estate, which is not good at covering up its market, may not be able to wait for a better price. At last year’s interim results meeting, the management stated that it would increase product premiums. , rather than fighting a price war.

Nowadays, more and more real estate companies hope to enter the Yangtze River Delta. Competition for land plots has become increasingly fierce, and transaction prices often reach the limit that each company can accept.

Take the recent land acquisition by Midea Real Estate as an example. It won the Nantong residential land through lottery with a maximum price of 893 million yuan, a premium of 17.62%; it won the Ningbo residential land for 2.437 billion yuan, a premium rate of 25.87%...

p>

However, although land prices are high, which affects the company's gross profit margin performance, the real estate market demand in the Yangtze River Delta has never decreased, and its sales rate is the fastest among several major regions.

Some data show that despite the impact of the epidemic, Yiwu property market data is still growing rapidly.

In 2020, the number of registered commercial housing units in Yiwu was 16,522, a year-on-year increase of 55.12%; the transaction value was 44.157 billion yuan, a year-on-year increase of 70.39%; the transaction area was 1.9766 million square meters, a year-on-year increase of 59.52%.

Under the three red lines, between gross profit margin and turnover, Midea Real Estate pays more attention to accelerating capital turnover, improving the efficiency of capital use, and reducing the demand for financing.

In the first half of 2020, Midea Real Estate achieved contracted sales of 22.41 billion yuan in the Yangtze River Delta region, an increase of 37.2% compared with the same period in 2019, accounting for 46.5% of the total contracted sales, accounting for the largest share of sales in the Pearl River Delta region. More than 3 times.

Today, the Yangtze River Delta has surpassed the Pearl River Delta to become Midea Real Estate’s top position, and it frequently participates in land auctions in the region.

In the first half of 2020, Midea Real Estate won 10 projects in the Yangtze River Delta, but only 1 in the Pearl River Delta. The status of the Pearl River Delta is even inferior to that of North China and the middle reaches of the Yangtze River (Jiangxi and Hunan) , Southwest and other regions are the least among all regions.

Hao Henngle, chairman of Midea Real Estate, said at the interim results meeting that from a real estate perspective, the areas and cities that can be developed in the Yangtze River Delta are much larger than the Pearl River Delta. Midea Real Estate has continued to increase investment in the Yangtze River Delta since 2018. This is a basic trend and a strategic choice in the context of the general economy.