Downtown plot sets record price as land sales boom

By Cherry Cao | November 29, 2013, Friday |

Online Edition

SHANGHAI set its highest price on record for land this year after Winmine Investment Ptd Ltd paid 42,821 yuan (US$7,020) per square meter for a plot in downtown Huangpu District today.

Winmine, a subsidiary of Singapore-listed Wing Tai Holdings Ltd, acquired the 8,594-square-meter parcel adjacent to the Xintiandi restaurant and bar area ahead of rivals including China SCE Property Holdings Ltd and Shanghai Yongye Group.

The parcel, this year’s most expensive piece of land by average gross floor area price registered in the city, was offered at a starting price of 29,013 yuan per square meter, or 748 million yuan, and was finally sold for 1.104 billion yuan, a premium of 47 percent.

The parcel is designated for office and commercial purposes, according to an earlier document released by the city’s housing authority.

“This seems to me a fair price concerning the plot’s prime location,” said Sky Xue, an analyst at China Real Estate Information Corp. “Moreover, taking into consideration its rather small size, the total investment for the project is still controllable despite the high average price.”

Xue expects the developer to sell part of the project upon its completion as it may allow the developer to make a decent profit within a fairly short period of time.

The city’s previous record was set in October when a subsidiary of Hong Kong-based K. Wah Group paid 568 million yuan for an even smaller riverfront plot of land in the Pudong New Area. The 5,665-square-meter residential parcel fetched an average gross floor area price of 40,106 yuan per square meter, or 63 percent above its starting price.

Shanghai saw robust land sales in the first 11 months of the year with plots worth more than 185 billion yuan being sold across the city as of today, according to CRIC data.

Land sales for this year are expected to surpass 200 billion yuan in Shanghai as parcels with a combined asking price of 18.2 billion yuan have been set for auction in December.

Real Estate

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Downtown plot sets record price as land sales boom

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