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Is the real estate enterprise taking the land "pie" or "trap"?

Statistics show that in the first 10 days of July alone, there were 29 plots with a transaction value of more than 500 million, including 18 landlords with a premium rate of more than 50%. The land market with high fever in the first and second tier cities has aroused the vigilance of the insiders. At the end of June, sun Hongbin, the "real estate maniac" and chairman of rongchuang China, also made a statement, suspending the land auction in the primary market.


Statistics show that in the first 10 days of July alone, there were 29 plots with a transaction value of more than 500 million, including 18 landlords with a premium rate of more than 50%. The land market with high fever in the first and second tier cities has aroused the vigilance of the insiders. At the end of June, sun Hongbin, the "real estate maniac" and chairman of rongchuang China, also made a statement, suspending the land auction in the primary market.


So, take the land now, is it "pie" or "trap"? If we don't take the land, what are the ways for real estate enterprises?


Increased land risk


At the end of June, sun Hongbin, chairman of rongchuang China, revealed at the Hefei project conference that rongchuang had stopped applying for land acquisition nationwide. As for when the primary market will restart, it depends on the follow-up credit policy, but rongchuang's M & A will not stop.


Sun Hongbin made no secret of the risk of the current land market. "I used to say that some of the first tier cities are very risky, and now some of the second tier cities are also very risky. The price of land is so high and expensive, which is unsustainable."


This aroused the vigilance of the industry. Chen Yunfeng, China real estate manager alliance, said that sun Hongbin is a pre-determined developer, and some real estate enterprises' land acquisition behavior belongs to gambling, to see whether the house price can double, but this possibility is almost impossible.


In the view of the insiders, there is a general phenomenon that the land price exceeds the house price in the hot cities at present. This kind of irrational and unhealthy land taking behavior leads to a huge risk in the real estate market.


People concerned worry that if there is fluctuation in the market environment in the future, it will aggravate the risk. In fact, recently, it was reported that the bank tightened development loans in the second half of the year.
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