Summary of Key Points
The land auction market in Chengdu in the first half of 2026 has cooled significantly compared to its “hot” performance in 2025: The supply of land has decreased in quantity but improved in quality (less land, but higher-quality land). The transaction area fell by 40% year-on-year; there were no “land kings,” indicating that companies are more rational in their land acquisitions. At the same time, non-core areas have attracted private enterprises due to their advantages, and a new approach of bundled land sales has been adopted to ensure comprehensive urban development. In the second half of the year, the supply of land is expected to increase, and the implementation of “New Regulations 2.0” will change the dynamics of the new housing market and land acquisition processes.
Detailed Analysis
1. Land Auctions from “Crazy” to “Calmer”: No More Land Kings, Transaction Volume Drops by 40%
In the first half of 2025, Chengdu’s land auctions were frenzied, with multiple “land kings” emerging within a month, and floor prices soared above 30,000 RMB and even 40,000 RMB, with premium rates exceeding 100% (for example, a starting price of 10,000 RMB selling for 20,000 RMB). However, the situation has completely changed in the first half of 2026:
- Reduced Land Supply: The planned supply of commercial housing land in the central urban area decreased by 16% compared to last year, and the actual transaction area of residential land dropped by 40%. The total planned residential land for the city was only 430 hectares, with residential land accounting for the majority of the 400 hectares reduction.
- Price Moderation: The highest premium rate in the first half of the year was only 18.5% (in Wuhou District), and there were even plots sold without any premium at all in Chenghua District. In short, developers are no longer competing fiercely, and the market has returned to a more stable state.
2. Differentiation in Land Acquisition Strategies: Central Enterprises Focus on Core Areas, Private Enterprises Target Non-Core Areas
Developers’ strategies for acquiring land have shifted:
- Central Enterprises Target Core Areas: Companies like Xiamen Guomao acquired a plot in Wuhou South First Ring (a small but high-quality area in the city center), indicating that central areas with premium land are still favored by central enterprises, although premium rates are well-controlled and not experiencing wild price increases.
- Private Enterprises Shift to Non-Core Areas: Land in the new six districts (such as Shuangliu and Pidu, which are not traditional city centers) has become more attractive because these areas offer convenient metro access, mature infrastructure, lower land prices, and new regulations that allow for better housing design (e.g., more flexible apartment layouts).
3. New Market Trends: Non-Core Areas Gain Momentum + Bundled Land Sales for Comprehensive Development
Two new trends emerged in this year’s land auctions:
- Non-Core Areas Gain Attention: The land in the new six districts won due to four key advantages: ① convenient metro access; ② complete living facilities (schools, shopping malls available); ③ the ability to design better housing under new regulations (e.g., larger balconies); ④ lower land prices. These factors make these areas more cost-effective for developers.
- Bundled Land Sales for Quality Assurance: In core areas, a new approach of “bundled sales” has been adopted, where metro hubs (TOD), shopping malls (owned by the developer and not for sale), parks, and residential buildings are sold together, requiring developers to develop them as integrated communities. This ensures that the core areas are well-rounded and not just isolated housing complexes.
4. Expectations for the Second Half of the Year: Increased Land Supply, Changing Standards for “Good Housing”
Two major changes are expected in Chengdu’s land auctions and new housing market in the second half of the year:
- Increased Land Supply: The supply of land in the second half of the year is usually higher than in the first half, and 2026 is no exception. However, the focus will still be on providing high-quality land.
- **Upgraded Standards for “Good Housing”: New regulations (New Regulations 2.0) have been implemented, and housing projects that meet these standards are now being sold. Previously, the focus was on the internal usable area of apartments; now, more attention is paid to public areas (such as lobbies, elevator halls, and green spaces) and services (quality of property management). A large number of such housing units will be released in the second half of the year, which will not only change people’s perception of what constitutes “good housing” but also influence developers’ land acquisition decisions, encouraging them to prioritize the creation of quality public spaces.
In One Sentence
The land auction market in Chengdu has cooled down in the first half of 2026, with companies becoming more rational and the market more balanced. In the second half of the year, there will be an increase in land supply, but it will still be focused on high-quality land. The new housing market will shift from emphasizing practicality to focusing on overall quality and user experience. When purchasing a home, consumers should pay attention to details such as community facilities and property management, in addition to the size of the rooms.