Shanghai plot fetches highest price for this year

A downtown plot of land in Shanghai has been sold at the highest price this year as a recovery in sales boosted developers’ expectations for a market rebound even as the government maintained property curbs.

The 1.2 million-sq-ft site near Shanghai South Railway station was sold yesterday for 5.4 billion yuan (S$1.06 billion), according to the local land reserve centre.

A group of four companies, led by China Vanke, the country’s biggest developer, and Shanghai Greenland Group, which is building China’s second-tallest tower, bought the site, said property broker Century 21 China Real Estate.

It was the city’s highest sale by value this year, according to Century 21, the country’s second-biggest broker.

China’s land values started to recover in the second half as developers considered acquiring more land even as the government kept its cooling measures, including home purchase restrictions and a property tax in Shanghai and Chongqing.

Average land prices in 300 Chinese cities rose 23 per cent last month from a year earlier, according to SouFun Holdings, the country’s biggest real estate owner.

China’s housing sales climbed 18.3 per cent to 595.8 billion yuan in November from a month earlier, National Bureau of Statistics data showed. China Vanke sold properties for a total 127.2 billion yuan in the first 11 months, higher than the full-year sales last year.

International property consultant Colliers International said yesterday its survey showed that Shanghai was the most favoured city in Asia among real estate investors in the region, followed by Hong Kong, Singapore, Tokyo and Beijing.

Its Global Investor Sentiment Survey 2012 also revealed that property investors in Asia are positive in their outlook for next year – with 70 per cent saying they would likely expand their property portfolio and increase their level of investment.

Source : Today – 14 Dec 2012

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