Shanghai land plots fetch big on rising demand

Three land plots in Shanghai — two in suburban Jiading District and one in Xuhui District — fetched a combined 2.4 billion yuan ($391 million) yesterday as developers' fight for land continued to intensify amid persistently improving sentiment among buyers.

Two land parcels in Jiading, both designated for residential development, drew great interest with more than 10 real estate developers participating in each of the bidding.

In the competition for a 36,574-square-meter parcel in Malu, Anhui Expressway Holding Group Co Ltd emerged victorious after it agreed to pay 1.15 billion yuan, beating 18 rivals.

Average gross floor area price for the parcel stood at 12,600 yuan per square meter. That represented a premium of 110 percent, or the highest registered in the city so far this year for a housing plot.

Shanghai-listed Greattown Holdings Ltd, which joined forces with a trading company in yesterday's bid for a 38,819-square-meter parcel in Anting, beat more than 10 competitors, including Shanghai Greenland, with a price of 712 million yuan, or 8,341 yuan per square meter, a premium of 85 percent.

"Shanghai saw a rather hot land market in July with eight residential parcels, offering a combined gross floor area of more than 1.2 million square meters, being released, the highest volume registered for a month so far this year," said Lu Qilin, a researcher with Shanghai Deovolente Realty Co.

Last month, 13 land parcels, excluding those designated for public use, were sold across the city for 18.14 billion yuan, a decrease of eight from June but only a dip of 6.9 percent in value, Deovolente data showed.

Also yesterday, China Nanyang Co Ltd acquired a 11,932-square-meter retail/office parcel in Xuhui for 535.7 million yuan, or 0.77 percent up from its starting price.