A batch of judicial auction properties in Shanghai's Pudong Tangzhen district has been listed at 70% of their market assessment value.

Recently, 66 residential properties located in Shanghai's Pudong New Area Tangzhen district have appeared on JD Asset Disposal Platform with starting prices significantly below market rates.

These properties will be officially auctioned by Beijing Second Intermediate People's Court on October 13, 2025. The property owner is Shanghai Fengdan Lishe Real Estate Development Co., Ltd. According to Tianyancha, the company's shareholder is Shanghai Sunac Ruifeng Real Estate Co., Ltd., whose controlling shareholder is Shanghai Sunac Real Estate Development Group Co., Ltd. (holding 51% stake), while Chang'an International Trust Co., Ltd. also holds a 49% stake.

The 66 properties are located at "No. 58 Lane Xiarong Road," which is actually Sunac Future Financial City - a mega-development in the Tangzhen district that sold new homes from 2021 to 2024. In 2021, it even attempted to reach "thousand-person lottery" status twice and topped Pudong New Area in both sales value and unit sales.

Now, these 66 properties from Sunac Future Financial City are awaiting auction at an average price of 48,400 yuan per square meter, while current new developments in the Tangzhen district, such as Poly Tianyi's fourth batch, have an average presale price of 83,000 yuan per square meter. The distance between these two developments is only about 3 kilometers.

Why are these 66 properties on the judicial auction platform priced below 50,000 yuan per square meter, far below the district's market price?

According to the judicial appraisal report issued by Shanghai Yongli Land and Real Estate Appraisal Co., Ltd., commissioned by Beijing Second Intermediate People's Court, they assessed the value of 73 properties at No. 58 Lane Xiarong Road, Pudong New Area. These properties are located on a plot of 45,540 square meters with a total construction area of 7,339 square meters. Individual unit sizes range from 90 to 147 square meters, with Shanghai Fengdan Lishe Real Estate Development Co., Ltd. as the rights holder.

Shanghai Yongli Land and Real Estate Appraisal Co., Ltd. stated that the total market value of the appraisal objects is 508 million yuan, equivalent to approximately 69,200 yuan per square meter.

From the listing information, current starting prices are set at 70% of the assessed value. For example, a property assessed at 7.29 million yuan has a starting price of only 5.1 million yuan. Based on this discount calculation, the average starting price is only 48,400 yuan per square meter.

According to previous sales records, Sunac Future Financial City's properties launched in the first half of 2021 had an average price of 68,000 yuan per square meter, with later phases reaching 75,000 yuan per square meter. At that time, quality secondary housing in the Tangzhen district once reached 90,000 yuan per square meter. Currently, Sunac Future Financial City's second-hand housing listings on Beike platform are around 65,000 yuan per square meter.

These properties are being judicially auctioned based on the execution ruling of Beijing Second Intermediate People's Court (2025) Jing 02 Zhi 50. The execution applicants include Jiaxing Dinghang Investment Partnership, Jiaxing Dingrui Investment Partnership, Jiaxing Xinyi Investment Partnership, and Jiaxing Xinli Investment Partnership. The executed parties include Shanghai Sunac Real Estate Development Group Co., Ltd., Nanjing Rongzhen Business Service Co., Ltd., Sunac Real Estate Group Co., Ltd., Nantong Qiren Real Estate Co., Ltd., Shanghai Fengdan Lishe Real Estate Development Co., Ltd., and Chongqing Sunac Real Estate Co., Ltd., with a case value of approximately 389 million yuan.

The ruling states that the executed parties should pay equity repurchase payments to the executors, but the executed parties have not fulfilled the obligations determined by the legal documents as required by the execution notice. After freezing and allocating the executed parties' bank deposits, it was still insufficient to fulfill the obligations determined by the effective legal documents, so other properties that the executed parties should fulfill their obligations with are lawfully sealed, frozen, detained, auctioned, and sold.

Due to its proximity to Zhangjiang Science City, the Tangzhen district has always performed strongly in Shanghai's real estate market. In July this year, during Shanghai's sixth batch of centralized land supply, a Tangzhen residential land plot attracted competition from seven developers. Eventually, a joint venture between China Merchants and CITS won the plot at a floor price of 52,400 yuan per square meter and total price of 2.73 billion yuan, with a premium rate as high as 40%. After this land auction, industry insiders predicted that future new housing prices in Tangzhen would challenge 90,000 yuan per square meter.

Although the starting prices of the 66 properties on JD Asset Disposal Platform are several thousand yuan per square meter lower than market prices, most properties show "0 registrations" status.

A real estate professional familiar with the judicial auction market explained that while judicial auction properties have relatively lower prices, they carry higher risks for buyers. Buyers must research mortgage situations, property defects, and other issues themselves, and once purchased, they bear full responsibility. Therefore, prices are always discounted from market rates. According to Tianyancha, Shanghai Fengdan Lishe Real Estate Development Co., Ltd., the current rights holder of these properties, has 30 consumption restriction orders, with 18 execution records in the past year alone, totaling 401 million yuan in executed amounts.