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Last land bid sold at a premium
By Richard Fu |
January 1, 2011, Saturday
|
Print Edition
Print Edition
THE Shanghai government yesterday reaped 330 million yuan (US$50 million), a 149 percent premium over the starting price, from the last land auction of 2010.
After more than 100 rounds of bidding, Shanghai No. 17 Cotton Investment Development Co won the site in Yangpu District. The winning price equals to a floor price of 15,179 yuan per square meter.
"The starting price is not that high, and the winning price is basically in line with the market," Sofun.com, a Chinese real estate portal, said in a commentary on the city's latest sale. "An auction is meant to let the market decide prices, so a high premium is also normal."
The transaction will have to be reported to the top land authority under the latest state rules which aimed to put a brake on soaring land prices.
Local authorities should report land that has been sold for a premium of more than 50 percent to the Ministry of Land and Resources within two working days after the closing of the deal, the ministry said in a statement last month.
The ministry issued the order after developers showed a renewed thirst for land in past weeks and pushed prices to record highs in cities from Shanghai to Guangzhou at government auctions, despite previous tightening moves.
The Yangpu land parcel, designated for commercial use, is near the Huangpu River. Nearby is the original site of Shanghai No. 17 General Cotton Mill, which has been converted into a major fashion hub.
The latest land sale ended a record year for Shanghai, which auctioned nearly 600 sites for 153 billion yuan.
After more than 100 rounds of bidding, Shanghai No. 17 Cotton Investment Development Co won the site in Yangpu District. The winning price equals to a floor price of 15,179 yuan per square meter.
"The starting price is not that high, and the winning price is basically in line with the market," Sofun.com, a Chinese real estate portal, said in a commentary on the city's latest sale. "An auction is meant to let the market decide prices, so a high premium is also normal."
The transaction will have to be reported to the top land authority under the latest state rules which aimed to put a brake on soaring land prices.
Local authorities should report land that has been sold for a premium of more than 50 percent to the Ministry of Land and Resources within two working days after the closing of the deal, the ministry said in a statement last month.
The ministry issued the order after developers showed a renewed thirst for land in past weeks and pushed prices to record highs in cities from Shanghai to Guangzhou at government auctions, despite previous tightening moves.
The Yangpu land parcel, designated for commercial use, is near the Huangpu River. Nearby is the original site of Shanghai No. 17 General Cotton Mill, which has been converted into a major fashion hub.
The latest land sale ended a record year for Shanghai, which auctioned nearly 600 sites for 153 billion yuan.
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