Chinese developers engage in intense bidding as Shanghai’s first land sale of the year gets under way
- The Shanghai government is auctioning 19 plots measuring a combined 10.16 million sq ft at a four-day sale
- The first plot in the northwestern Putuo district was sold to a state-owned consortium, with the bidding lasting 55 rounds
A total of 19 plots measuring 944,200 square metres (10.16 million sq ft) will be auctioned during the four-day sale that ends on Friday.
The first five plots sold on Tuesday witnessed furious bidding at the Shanghai land authority’s office in Pudong New District, with some fetching as much as 10 per cent above their reserve prices.
The first plot was snapped by a consortium of state-owned Zhejiang Communication Investment Group and the real estate arm of state-owned Xiamen Xiangyu Group, which competed with 10 other bidders for 55 rounds.
The land in the city’s northwestern Putuo district attracted interest from major developers such as China Overseas Land and Investment, China Resources Land and Poly Development. It was eventually sold for 3.8 billion yuan (US$552.3 million), or 44,450 yuan per square metre, almost 10 per cent higher than the floor price.
The bidding was equally intense for the four other parcels. A parcel in Jingan district, in the heart of Shanghai, was won by state-owned Yuexiu Enterprises (Holdings) for 67,936 yuan per square metre, or 7.5 per cent higher than the reserve price.
