Shanghai sees US$3.6b record land price
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E-mail Shanghai Daily, September 6, 2013
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A bird's-eye view shows the Xujiahui Center project parcel in Shanghai. The plot sold for 21.77 billion yuan (US$3.6 billion) yesterday, a record for a single piece of land in the city and the most expensive plot in terms of total price sold on the Chinese mainland since 2010. [Xinhua] |
A plot of land in Shanghai's Xuhui District sold for 21.77 billion yuan (US$3.6 billion) yesterday, a record for a single piece of land in the city and the most expensive plot in terms of total price sold on the Chinese mainland since 2010.
The winner at the public bidding was Well Master International Investment Ltd, a wholly owned subsidiary of Hong Kong's Sun Hung Kai Properties Ltd.
The Xujiahui Center project parcel, designated for office, commercial, food and beverage and hotel purposes, fetched an average gross floor area price of 37,264 yuan per square meter, a premium of 24.4 percent.
Dubbed the last core site in Shanghai, the 99,189-square-meter plot, with total buildable area above ground of more than 584,200 square meters, was the subject of much attention before the sale because of its record starting price of 17.5 billion yuan, the highest for a single land parcel in the city.
"The acquisition is in line with the corporate strategy of the group to invest in key Chinese cities and will further strengthen the group's market position and brand in the property business in the Chinese mainland," Hong Kong's biggest developer by value said in a statement on its website. "The terms of the acquisition are normal commercial terms and are fair and reasonable."
According to a document released earlier by the local land authority, construction on the site should commence within 12 months from the delivery of the plot by the government and the whole project should be completed within seven years.
"The price tag paid and the size of the investment shows Sun Kung Kai's commitment to the China market and their confidence in the long-term sustainability of the market," said James Macdonald, head of research at Savills China.
"The developer's background and expertise in developing well thought-out, mixed-use developments bode well for the future success of the project and ushers in a new era for Xujiahui, which, although very successful, has failed to keep pace with Nanjing Road, Huaihai Road and Lujiazui in terms of new developments in recent years."
Sun Hung Kai's local portfolio includes landmark mixed-use developments Shanghai International Financial Center and Shanghai International Commerce Center as well as luxury residential project Shanghai Arch.
Yesterday's record price was the latest evidence of continuously rebounding sentiment among real estate developers.
Land sales in the city exceeded 100 billion yuan in the first eight months of 2013, with the value for this year expected to surpass the historic high in 2010, according to Soufun Holdings Ltd.
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