China Financial Daily

The diminution in value of land developers stagnation pressure of about one billion square meters of stock
Although developers have been eager to find land, but land is not sufficient to prove once again become scarce goods. In fact, before buying the land is still a large number of stagnation pressure in the hands of developers. If the count is subject to all over the land last year, the plight of the transfer is far from complete indicators, the national inventory of land still can not be underestimated.

According to the report released by DTZ Debenham Tie Leung: the land market as a result of inventory at the national level, “the backlog initiative”, approximately 1.2 billion square meters of land still lag pressure in the hands of developers. Is well documented: from 1998 to 2008 decade, the nationwide real estate development for the acquisition of the land area of 3.13 billion square meters, and as at the end of 2008 the volume of national land development with only 1.94 billion square meters, accounting for the acquisition of 62% of the total, there are still nearly 40% of the land stagnation pressure in the hands of developers, with a view to circumvent the growing shortage of land resources in the future risks, “the backlog initiative” serious.

CBN reporter has learned that is not a so-called “cover to” national real estate listed companies in 2007 had bought huge amounts of land, here was opened in 2008 sales, but sales stagnated after the discovery, immediately stop plate. General manager of the company in accordance with the instructions: a similar rebound in land prices will wait for further consideration. The reference to the company’s access to land for residential projects of regional sections: the price is only around 8,000 yuan / square meters, they have to sell 12,000 yuan / square meter to obtain a reasonable profit.

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