China's Local Governments Continue to Benefit from High Land Prices

The local Shanghai government has generated ¥137 billion ($1 = ¥6.6) from land auctions this year through November 22, exceeding the ¥102.5 billion for the whole of last year, according to the China Index Research Institute. The amount of land auctioned off in the city over the period increased just 6%, but the value of the proceeds surged 64%. Land plots for office buildings were sold for ¥16,000/m2 on average, up 114% from 2009 level.

Beijing raked in ¥100.4 billion through November 22, which is the first time revenues from land sales in Beijing have exceeded ¥100 billion. The Chinese capital's land price for residential and office purposes was ¥8,559/m2 and ¥9,874/m2 respectively, up 56% and 100% compared to a year earlier. The Dalian government and Tianjin government took ¥89.3 billion and ¥86.7 billion from land auctions over the same period, up 297.7% and 42.9% respectively. Hangzhou, the capital of Zhejiang province, collected only ¥58.9 billion, compared to ¥102.5 billion for the whole of 2009.

Government revenue from land auctions, January 1 – November 22, 2010

1 Shanghai: ¥137 billion, + 69.1%

2 Beijing: ¥100.4 billion, + 57.2%

3 Dalian, Liaoning: ¥89.3 billion, + 297.7%

4 Tianjin ¥86.7 billion, + 42.9%

5 Hangzhou, Zhejiang: ¥58.9 billion, - 23.8%

6 Wuhan, Hubei: ¥47.7 billion, + 70.3%

7 Nanjing, Jiangsu: ¥46.4 billion, + 128.7%

8 Chengdu, Sichuan: ¥35.8 billion, + 59.9%

9 Suzhou, Jiangsu: ¥34.4 billion, + 26.1%

10 Chongqing: ¥32.6 billion, - 9.8%