What impact will the abolition of the land price ceiling have on cement demand?

Recently, Guangzhou, Guangdong Province, put up the first homestead of the fourth batch of land transfer in Huangpu District, which clearly "determines the winner according to the principle of the highest bidder", which means that Guangzhou has become the first first-tier city to cancel the land price cap.

It is reported that since September this year, more than 10 cities across the country have cancelled the land price ceiling in land transfer and resumed the implementation of the "highest bidder wins" rule. It can be predicted that this trend will gradually expand to more and more cities. What impact will the

abolition of the land price ceiling have on cement demand? The lifting of

land price restrictions is expected to further activate the real estate market, drive the release of consumer demand for housing, and some high-quality plots in the central areas of hot cities will also face more intense competition, which may promote the construction and supply of high-quality housing, which may lead to some new demand for cement.

However, the effect of policy transmission varies greatly between cities and different plots, and the "cold door" areas in the "cold door" areas may be more neglected, and the imbalance between supply and demand of real estate has been a fact of thunder, even if the upper limit of land price is abolished, in the case of "cold" and "hot", this rise and fall. Real estate may still be difficult to rely on for the improvement of cement demand.

In the past, the land price limit limited the premium rate of land auction, which affected the government's due land income, while the "highest bidder" could strengthen the local financial support of land transfer income.

In the current environment of stable economy and steady growth, more land income can effectively alleviate the pressure of local finance, and the construction of major projects will be better guaranteed. When the scope of "the highest bidder wins" is further expanded, the infrastructure side may provide more demand for the cement market.