A Land parcel in Tangzhen, Pudong New Area fetched more than 3.7 billion yuan (US$594 million) Wednesday, becoming the most expensive residential plot sold in Shanghai in more than two years.
Gross-floor-area price for the 122,018-square-meter land stood at 18,199 yuan per square meter, or 65 percent above its starting price.
Eight real estate developers participated in the auction and Shanghai Pudong Development (Group) Co finally acquired the plot after beating counterparts including Poly Real Estate, China Overseas Property and China Merchants Property.
"This is the costliest land parcel sold in the city since 2011 in terms of total price," said Zhang Wanyu, an analyst with Soufun.com, operator of the country's largest real estate website. "Due to rather limited supply in that area, parcels in Tangzhen have always been popular among developers."
Since 2008, a total of seven residential plots, excluding the latest one, had been released for sale in Tangzhen, and they were sold for an average 104 percent higher than their asking prices, according to Soufun research.
Average GFA price for land parcels in Tangzhen hovered between 4,000 yuan and 5,000 yuan a square meter in 2008 but surged to as much as 19,040 yuan per square meter when China Greentown acquired a 58,163-square-meter parcel in the area in 2009, Soufun data showed.
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