City king reappears in the market, K-shaped differentiation in the land market in the first half of the year.

In the first half of 2026, the land auction market had a split development with a "two extremes" trend. On one hand, the supply of residential land across the country continued to shrink, leading to a 20% decrease in land transaction volume compared to the previous year. On the other hand, there was intense competition in the auction of prime land in core cities, even triggering a wave of "land king fever", with at least 14 plots in 36 cities being sold at record high prices. In the past, the "land king fever" was driven by competition among real estate companies, and optimism about housing prices and prospects. However, the current situation is different as real estate companies now prioritize certainty in sales, focusing on acquiring high-quality land. Additionally, with the government reducing land supply while improving quality, competition for core land parcels has intensified.