Bangtai Real Estate may not have expected that the last residential land in the main city of Kunming last year and the first residential land in Kunming this year were all taken by themselves. Then Kunming pressed the pause button on the transfer of commercial housing land, and there is no intention of restarting it so far.
This year, the first land auction in the main city of Kunming was carried out 3 days before the Spring Festival holiday, although Bangtai successfully won 43 acres of residential land in the Shuangta area, but the price of land is not cheap, because it met the construction auction, and finally Bangtai won the premium of 49.5 million, which is equivalent to the floor price of 6846 yuan / square meter, which is higher than Forte Yunji and Fengqi Lanting in the same area.
Bangtai Group's new project in the Twin Towers area has started rapidly
Counting the land in the Shuangta area, Bangtai Real Estate has taken land in Kunming for three consecutive times from November last year to February this year, with a total area of 209 acres and a total of 1 billion.
1 billion yuan of land was nothing three years ago, but in 2024 it is unusual, because since 2021, all foreign real estate companies, no matter how big the developers, as well as local private real estate enterprises, have not spent so much money on the Kunming land market. In recent years, the land in Kunming can be compared with Bangtai, in addition to the Anju Group is Jiantou, but Anju Group is a platform company in Kunming, and it is incumbent on Kunming Real Estate to support the city, and Jiantou is also one of the top state-owned enterprises in Yunnan, and taking land also means to help the local economy.
However, Bangtai is a private real estate company in Sichuan, although the release momentum has been relatively good in the past two years, but after all, the comprehensive strength is still not as good as the domestic head real estate company. In the 2023 sales list of Chinese real estate enterprises announced by Kerry, Bangtai Group ranked 82nd with a sales amount of 13.97 billion. In terms of trading area, Bangtai Group ranked 43rd in the country with a trading area of 1.567 million square meters last year.
The South China Mansion developed by Bangtai Group in Chengdu
Last year, there was a huge gap between the trading amount and the trading area of Bangtai Group, and the ranking of the trading area was much higher than the trading amount, indicating that a large number of Bangtai Group's projects were distributed in third- and fourth-tier cities and concentrated in the west, so the unit price was relatively low and sales were limited, and the current consensus in the real estate market was that the risk of development projects in third- and fourth-tier cities was greater.
The same is true of Bangtai's entry into Yunnan, where three are in Yuxi, and the first project in Kunming is also in the remote Majinpu. At present, 3 of Bangtai's 4 projects in Kunming are in Chenggong, where housing prices are relatively low. However, in recent years, Bangtai has gradually increased its investment in first- and second-tier cities, taking a lot of land in Chengdu in the past two years, and gradually entering the core area in Kunming.
It is precisely because Bangtai Group has gradually increased its investment in provincial capital-level cities and continuously acquired land, so in the first quarter of this year, Bangtai Group ranked 38th with a new value of 3.41 billion yuan, ranking even higher than Zhonghai, Longhu and Dahua.
Not to mention the impact of the current market situation, coupled with the fact that Bangtai has not been in Kunming for a long time, and the only project on sale is in Majinpu, and there is no brand and word-of-mouth accumulation, so Bangtai's second project in Kunming, Bangtai Zhenjing, has wisely adopted the strategy of opening existing houses. This further exacerbates the need for funding.
Bangtai Garden City is currently the only project for sale by Bangtai Group in Kunming
In November last year, after Bangtai took the land in the Wujiaying area of Chenggong, it quickly passed the regulations and started construction, and in January this year, when Yunnan Real Estate Network stepped on the site, it saw that the project was indeed in full swing. Of course, the opening of existing houses is conducive to sales, but the capital requirements for Bangtai real estate are very high, not to mention that Bangtai also took two more pieces of land next, especially in the Shuangta area, it cost 578 million yuan to take the land alone, if these two projects also adopt the strategy of opening existing houses, it means that Bangtai is currently in Kunming 4 projects, only Majinpu's Bangtai Garden City can generate cash flow, and the remaining 3 projects need huge capital investment. However, Bangtai Garden City is located in a remote area, the price is not high, and it does not contribute much cash flow, and the top 30 in Kunming real estate project sales list do not have the name of Bangtai Garden City, and the sales of SCE Tianyu in the 30th place are 493 million, indicating that the sales of Bangtai Garden City last year will not exceed 493 million.
Bang Tai Paradise is planned to be sold as an existing house, and construction is currently intensifying
Bangtai's other projects in Yunnan are also unable to provide much financial support for the Kunming project, among which Bangtai's Bangtai Sunshine Lakeshore in Chengjiang still needs construction funds, which means that Bangtai's large-scale investment in Kunming from the end of last year to the beginning of this year must rely on the support of the group's headquarters and its base camp Sichuan. Fortunately, Bangtai has developed well in Chengdu in the past two years, and many projects are selling well, and last year Chengdu was the only city in China where housing prices were still rising, and Bangtai also ranked 32nd among all real estate companies in Chengdu with sales of 3.084 billion yuan. In the first quarter of this year, Bangtai's sales ranking in Chengdu further improved to 17th.
In other cities in Sichuan, Bangtai has a stronger development momentum, according to Kerry's statistics, among the 16 provincial prefecture-level cities in Sichuan, Bangtai Group sold a total of 7.592 billion houses last year, ranking first. In second place is precisely the Yuanda Group, which has also expanded heavily in Yunnan.
Bangtai Group has been deeply involved in Sichuan City for many years, laying a good foundation for its outward expansion
It is the strong performance in Chengdu, especially in the whole of Sichuan, that has given Bangtai the confidence to continuously acquire land in Kunming and even open existing houses, but in today's real estate market environment, Bangtai's move has successfully expanded Kunming's market share in the short term, making Kunming another important growth point for the development of Bangtai, but it also has to bear the pressure and risk of funds.
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