Only four of 20 large Chinese cities saw residential land sales last week, according to a real estate sector report.

The report by China Indices Research Institute that was published on Monday said residential land deals were clinched in Hangzhou, Suzhou, Changsha, and Chengdu during the third week of June. These four were among 20 monitored major cities, including Beijing, Shanghai, and Shenzhen, the 21st Century Business Herald reported.

"Now local governments treat developers to dinners saying a dozens pieces of land are available, and let developers choose. But last year we visited governments for investment opportunities," Pan Jun, president and CEO of Fantasia Holdings Group Co Ltd, told the newspaper.

Pan expects a 40 percent to 50 percent drop in land supply prices this year, compared with that at the peak time last year. He sees opportunities to buy land parcels at a low price in the third quarter.

"Ninety percent of the local governments' loans are expected to be paid back by revenue from the land sales. Many local governments made loans for demolitions during the peak time last year, and that pushed up land costs," Pan said.

Local governments in some second-tier and smaller cities all want land sales, and some of them had even contacted developers for land deals, Pan told the newspaper.

(chinadaily.com.cn June 24, 2010)