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SHANGHAI: A piece of land located strategically close to China’s famous Nanjing Road in Huangpu District measuring 13,709 sq m has been auctioned on Feb 8 at 3.41 billion yuan (RM1.72 bilion). The land is known as the most expensive plot of land in China, according to Shanghai Daily.
The land was acquired by a joint-venture (JV) company by partners -- 51%-owned Shanghai New Huangpu (Group) Co Ltd and 49%-owned Shanghai New World Co Ltd, both of which are state owned conglomerates. The JV company beat the Chinese Estates Group and Wharf (Holdings) Ltd, both of which are big property companies in China.
The land is designated for retail and office use costing 51,820 yuan per sq m. The same piece of land was first sold to Nanjing Sunning Real Estate Development Co Ltd for a record 4.4 billion yuan in August 2007 but was returned to the government a year later.
The land opened for bidding on Feb 8 with a starting price of three billion yuan, is located within Jiangxi Road M, Nanjing Road E, Henan Road M, and Tianjin Road in the financial capital of China.
Xue Jianxiong, an analyst with E-House (China) Holdings Ltd, the country's largest integrated real estate services provider said the land fetched such a high price because of its good location. He added that, “prices of prime retail and office properties in the city are expected to go northward over the coming three to five years amid the city's continuous economic growth".
Industry analysts said prime retail properties built on the site, may be able to fetch as much as 100,000 yuan per sq m.
