CR Land wins site in Shanghai for 7b yuan

China Resources Land (1109) has won a site in Shanghai for nearly 7 billion yuan (HK$7.5 billion), according to mainland media.

A unit under the state-owned developer secured the plot in Baoshan district at the reserve price yesterday, the reports said. The gross floor area of the residential-cum-commercial site is 369,415.9 square meters, meaning the cost per sq m is 18,948 yuan. The government reference price is 69,000 yuan per sq m, in line with the prices of second-hand homes nearby.

Meanwhile, Moody's said the credit quality of Chinese developers will be further affected by weak sales over the coming 12-18 months.

Its peer S&P Global Ratings expects the country's property sales next year to decline by up to 25 percent from 2022 to about 10 trillion yuan in a downside scenario. And that would shrink China's real gross domestic product growth to 2.9 percent in 2024.

The rating agency sees a 20 percent probability of it happening with Beijing providing no significant government stimulus to the sector, nor discretionary fiscal or monetary support.

Real estate directly makes up around 13 percent of China's GDP, although S&P says its overall footprint is approximately twice as large.