China's land market in major cities is heating up in the first half of the year as the real estate industry rebounds and developers regain confidence, according to market data and industry players. .

Shanghai's land sales for the first half wrapped up with 17 residential-use plots sold, signaling a clear rise in market activity. While some initial lots went at minimum prices, recent transactions have seen high premiums, reflecting renewed developer optimism.

Similarly, Hangzhou City in east China's Zhejiang Province recently closed deals on five residential plots, three of which came with significant price premiums. In total, Hangzhou sold 34 such plots worth 48.1 billion yuan (about 706 million U.S. dollars) in the first half.

"In June, the overall land market was noticeably more active. Local governments released higher-quality plots in tune with market rhythms. As home purchase restrictions are continually optimized and developer sales performance improves, developers have become more willing to compete for premium plots in core cities," said Huang Yu, executive vice president at China Index Academy.

In Changsha City, central China's Hunan Province, a single residential land auction saw over 40 bids from multiple firms, ending with a 30 percent premium, the city's highest so far this year.

"Driven by the release of improved housing demand and the gradual recovery of market expectations, high-quality land resources in Changsha continue to attract active pursuit from developers. This has, in turn, boosted the land market's momentum, creating a virtuous cycle that flows from the sales side to the investment side," said Jiang Jing, director of the Real Estate Market Regulation Division of the Municipal Housing and Urban-Rural Development Bureau.

Shenzhen in south China's Guangdong Province also saw six residential land deals in the first half, with half carrying premiums of over 50 percent, underscoring fierce competition for top locations. Land market activity remained brisk in Beijing, Jinan, and Wuhan as well.

"Developers' financial positions and market expectations have obviously improved. After inventory clearance, some firms now have relatively low land reserves, prompting them to compete more aggressively for high-quality sites. This trend reflects a warming market," said Wu Jing, director of the Tsinghua University Real Estate Research Center.