Core Content Summary
On June 5th, Poly Real Estate acquired a residential plot in Shenzhen Nanshan Science and Technology Park after more than 290 rounds of bidding, for a total of 5.772 billion yuan, with a premium rate of 150.7%. The land cost per square meter (floor area) was 108,600 yuan, setting a new record for the highest price per unit of residential land in Shenzhen. This plot was fiercely contested due to its prime location, top-notch amenities, and low-density rarity, which also reflects the differentiated trend in the Shenzhen land auction market: “core plots are snapped up, while peripheral plots remain stable.”
Why This Plot Became the “King of Land”?
The land in Nanshan Science and Technology Park is truly a perfect candidate:
- Prime Location: Located in Yuehai Street, Nanshan District (the heart of Shenzhen’s innovation ecosystem, home to companies like Tencent and Baidu), it boasts comprehensive surrounding facilities—including the Shenzhen Bay Metropolis Mall, Nanshan Foreign Language Schools covering all levels of education from elementary to high school, a science park, and two subway lines. It is also close to industry landmarks such as the Baidu International Building and software development centers.
- Shortage of Residential Land in the Area: No residential land has been sold in Yuehai Street for many years, with secondary housing prices in the vicinity ranging from 120,000 to 180,000 yuan per square meter, and new homes are extremely scarce. The nearby Shenzhen Bay Lixi project, which acquired the land at the end of 2024 for a floor price of 70,000 yuan per square meter, sold out for 13 billion yuan by the end of 2025, with additional sales in March totaling 23.9 billion yuan, indicating a strong demand for properties in core areas.
- Rare Low-Density Property: The plot has a low residential density of only 2.9 (the lower the density, the shorter the buildings and the greater the spacing between them, resulting in a more comfortable living environment). This is the first time in nearly a decade that a low-density, pure residential plot has been publicly sold in the science park area. The residents here are mostly high-income individuals from high-tech industries (such as company employees and tech entrepreneurs), who are seeking larger and more comfortable homes.
Low Density + Pure Residential: A Rare Improvement Opportunity for the Science Park
In the past, most residences in the science park were of high density (with a density of over 4). The new 2.9 density means that the same area can accommodate only 29,000 square meters of housing compared to 40,000 square meters at a density of 4, resulting in fewer buildings, more green space, and a better living experience.
Analyst Sun Hongmei notes that this plot fills a gap for low-density, improved residential options in the science park area. Thousands of high-net-worth individuals (such as programmers with annual salaries of millions or corporate executives) previously had to buy second-hand homes if they wanted to move into lower-density residences; now, they finally have new options available.
What Signals Does the “King of Land” Convey?
The sale of this plot sends several important messages to the market:
1. Rising Land Prices in Core Areas: The price of 108,600 yuan per square meter has raised the average land prices in Nanshan Yuehai and the science park area, making luxury homes in Shenzhen Bay more valuable and less prone to depreciation.
2. Central and State-Owned Enterprises Continuing to Invest in Core Plots: The buyers were Poly, China Sea, and China Resources—central and state-owned enterprises—which demonstrate their willingness to pay high prices for premium land in the city’s core areas due to the lower risks and stable returns.
3. Preparatory for Future Auctions: Additional residential plots in Qianhai Guiwan and Baoan Xin'an are scheduled to be sold later this year. The success of this auction will encourage real estate companies to bid more aggressively for these core plots, reinforcing the expectation that assets in Shenzhen’s core areas are resilient to market downturns.
Uneven Heat in Shenzhen’s Land Auctions: Core Rare Plots Are Highly Contested, While Peripheral Essential Plots Remain Stable
The logic of this year’s land auctions in Shenzhen is clearly divided:
- Core Rare Plots: These plots are in high demand, with no entry barriers or price limits, and premium rates often exceed 150%. For example, the Longhua Minzhi North Station plot was acquired by Tianjian, a private company, for a 40% premium.
- Peripheral Essential Plots: These plots remain relatively stable. The Luohu Sungang plot in March was sold at the reserve price due to strict requirements and joint development with the subway; other peripheral essential plots were mostly sold at or below the reserve price.
In summary, there is still strong demand for high-quality homes in core areas, but interest in less desirable peripheral areas is lower, leading real estate companies to be more cautious when bidding.
In Conclusion
The emergence of this “King of Land” is a result of a combination of factors: a prime location, low density, and high demand. It highlights that premium assets in Shenzhen’s core areas will always be in high demand, while the peripheral market values cost-effectiveness. Whether buying or investing, following this trend is a safe bet.