Shanghai's land sales exceeded 100 billion yuan (US$16 billion) in the first eight months of this year as sentiment among developers rebounded, with the value for this year set to beat 2010’s historic high.
The city sold 121 parcels — 49 for housing and 72 slated for commercial uses — between January and August for 100.06 billion yuan, Soufun.com, operator of the country’s largest real estate website, said in a report released yesterday.
The receipts marked a jump of 30 percent from the entire value registered in 2012.
“We expect land sales to exceed 2010’s 127.2 billion yuan by the end of this month as parcels with starting prices of 31 billion yuan are set to be released in September,” said Li Zongzhou, a Soufun analyst.
In fact, 12 of the 121 plots were sold at more than double their asking price, evidence of stiffer competition among developers who have adequate capital and upbeat about the industry.
Shanghai Greenland Group was one of the most aggressive developers as it spent nearly 10.5 billion yuan for nine parcels totaling 517,000 square meters during the eight-month period, Soufun data showed.
Li added that robust interest among real estate developers to expand their land banks began to emerge in April as sales exceeded 10 billion yuan in each of the following months.