Shanghai land sold for record $2.2b
A LAND parcel in central Shanghai sold at a record-breaking price of 11.01 billion yuan (S$2.2 billion) on Wednesday.
This means the housing price will be estimated at more than 150,000 yuan per sq m when the residential project is completed.
Rongxin (Fujian) Investment Group became the new "Land King" when it won a bid on the land in Jing'an district, which is just 2km from the Bund - which borders the Huangpu River and People's Square in the city centre - and 3km from Lujiazui, a financial hub.
Rongxin is the fifth developer to bag the title of "Land King", meaning a developer which bought a land parcel at the highest price on record in Shanghai.
The city's limited land supply for residential development and developers' growing appetite to refill their land reserves after they gained from robust sales in the first half of this year, are the main factors behind the land fever, said analysts.
The land auction was completed after 18 developers competed in more than 460 rounds of bidding.
The final price was 1.4 times the minimum bid price.
"In the first 10 minutes, you might think they are crazy, but all you would feel is the eagerness for a piece of land in central Shanghai.
"This could be the last chance for a long time for many developers to include a land parcel at a premium location, due to the limited supply of land in the city centre," said Wang Yuanchen, who saw the bidding on Wednesday.
Lu Wenxi, an analyst with Shanghai Centaline Property Consultancy, said recent moves by the regional authorities in Suzhou and Nanjing to cool the land markets in those cities have also made developers cast their sights on Shanghai, which has already experienced the authorities' adjustments and controls.
More than four parcels of land in suburban Shanghai have been auctioned in the past three months, while only two plots in central Shanghai were available.
ASIA NEWS NETWORK