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Governments are responding to the trend of land returns with urgency. For example, in December 2024, Poly Development acquired plots in Guangzhou’s Tanhu District for over 7 billion RMB, despite the previous owner, Evergrande, returning the land after it remained undeveloped. Local authorities are adjusting zoning regulations and quickly relisting the land to attract developers back, driven by disappointing land sale results throughout 2023.
Data indicates that total land sales in Guangzhou reached 84.7 billion RMB in 2023, a 35% decline from the previous year. These substantial drops have prompted governments to reassess how they engage with developers, often resorting to making land more attractive for acquisition by easing conditions and lowering development requirements.