Vanke, china merchants shekou pick up rmb 6.2b in shanghai sites

Shanghai sold a pair of residential sites for a total of RMB 6.2 billion today as China Vanke and China Merchants Shekou swooped on the new projects in the city’s Qingpu District.

The set of transaction pave the way for the creation of nearly 187,000 square metres of homes in the suburban Shanghai district, but also demonstrate the dwindling interest in new sites, even in China’s most prosperous city.

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Both of the plots sold for the auction reserve price and each land sale attracted only one bidder, after the city already cancelled four planned site sales in the last month.

China Vanke purchased Qingpu District plot 33-01 for the auction reserve price of RMB 2.95 billion ($436 million) according to Shanghai government records. The 49,500 square metre (533,000 square foot) site is approved for construction of 89,000 square metres of finished homes, which works out to a unit price of RMB 33,160 per square metre.

Qingpu district site 27-04 was picked up by Guangdong-based developer China Merchants Shekou for RMB 3.25 billion, which was also the reserve price for the 33,190 square metre parcel.

Approved for construction of 1389 homes covering 97,900 square metres, in what could be a strange coincidence, China Merchants’s new purchase works out to around RMB 33,190 per square metre of built space – nearly the same price as Vanke’s acquisition.

Ref : Property Report