Date
19 August 2017
Property developers are willing to splurge on prime Shanghai sites due to the huge appreciation potential. Photo: Bloomberg
Property developers are willing to splurge on prime Shanghai sites due to the huge appreciation potential. Photo: Bloomberg

Lai Fung unit sets a record with Shanghai land deal

A unit of Lai Fung Holdings (01125.HK) secured a site in Shanghai Wednesday with a 577 million yuan (US$93.06 million) bid, a premium of 62.54 percent over the floor price, Singtao Daily reported Thursday.

The site in Huangpu district measures only 6,885.2 square meters, making its unit price as high as 59,900 yuan per square meter. If one were to exclude the 30 percent area reserved for affordable homes, the unit price goes up to 85,800 yuan, surpassing the previous national record of 73,000 yuan set in September last year by Sunac China Holdings (01918.HK) in Beijing, the report said.

The starting price was set at 37,000 yuan per square meter, also a record in Shanghai. Meanwhile, nearby properties are now selling for 80,000-100,000 yuan per square meter, according to the report.

As the Chinese property market is cooling, housing curbs are being loosened. There are reports that Shanghai has become the second city after Beijing to resume the sale of luxury homes.

Some industry insiders pointed out that land plots in Shanghai have huge potential to appreciate, making developers willing to spend large amounts of money to secure the sites, the report said.

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