Shanghai land sold at highest price on record
A land parcel in central Shanghai sold at a recordbreaking price of 11.01 billion yuan ($1.66 billion) on Wednesday.
This means the housing price will be estimated at more than 150,000 yuan per square meter when the residential project is completed.
Rongxin (Fujian) Investment Group Co Ltd became the new “Land King” when it wona bid on the land parcel in Jing’an district, which is just two kilometers from the Bund, which borders the Huangpu River and People’s Square in the city center, and three kilometers from Lujiazui, a financial hub.
Rongxin is the fifth developer to win the title of “Land King”, meaning a developer which purchased 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 for future development, after they gained good liquidity from robust sales revenue in the first half of 2016, are the main rationale 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 1.40 times the minimumbid price.