TWO land plots in Longgang District sold for 478 million yuan (US$62.89 million) Monday afternoon, nearly double the starting price.
Shenzhen-based real estate giant Vanke successfully outbid six other buyers to buy the two plots, with a combined land area of 78,583 square meters, in Shenzhen Grand Industrial Zone.
The plots will be developed for housing although almost all apartments will be restricted to a maximum 90-square-meter, and 15 percent of the apartments must be provided free to the city government for low-income families.
The two land lots failed to sell at an auction in late January, with no developers offering bids above the initial asking price. Analysts said the restriction on the individual apartment area was the major reason behind the failed auction in January.
A property researcher has contributed the success of Monday’s auction to Vanke’s commitment to providing housing for low-income families living in cities.
At Monday’s auction, the two land lots sold for 1,780 and 2,356 yuan per square meter respectively. With the construction and municipal administration fees added, the apartments would be sold at between 6,000 to 7,000 yuan per square meter upon completion, said a property consultant surnamed Hui from a local real estate agent. (Tan Xiaomi)