by WANG Tingting

Shanghai's sixth round of land auctions this year—widely seen as its most anticipated—kicked off on July 24 with strong participation from state-owned developers. Five residential plots were auctioned on the first day, attracting 11 central and local SOEs and bringing in 18.53 billion yuan, with an average premium of 13%.

China Overseas Property emerged as the biggest buyer, spending 11.9 billion yuan on two plots in Jing'an and Putuo. Its Jing'an acquisition, a rare residential-commercial site near East Siwenli, sold at a 10.1% premium after 34 rounds of bidding. The site was converted from commercial to mixed-use in April and allows residential towers up to 150 meters tall.

In Putuo, China Overseas Property again outbid rivals including Shanghai Construction Group for a mixed-use site combining residential and commercial functions, offering a 14.2% premium. Analysts noted that while both plots came with commercial-use requirements, the final premiums were moderate—an indication that developers remain cautious due to high construction costs and future competition in the high-end housing market.

Anhui Expressway Real Estate, a SOE backed by the Anhui provincial government, won a plot in Minhang District after a fierce 78-round contest. The site, located in the Xinzhuang area, reached its capped price with a 40% markup. Anhui Expressway Real Estate then secured the plot by offering to build 2,650 square meters of public service facilities, edging out competitors including China Overseas Property and Poly Developments. The win extends Anhui Expressway Real Estate's presence in Minhang, where its Shenlongyuan project has sold strongly.

Xiamen-based SOE developers were also active. Lianfa Group, in partnership with China State Construction Engineering, acquired a 147,000-square-meter site in Qingpu New Town at base price. The company's previous land purchase in Pudong in June carried a high premium of over 41%.

In Fengxian, Xiamen SOEs ITG Holding and Xiangyu won a low-density residential site with an 11.8% markup, outbidding a local joint venture.

The auction continues on July 25 with three highly coveted sites in Xuhui, Tangzhen in Pudong, and North Bund in Hongkou. Industry analysts expect the Xuhui plot, located in the historical Hengfu area, to set a new national record with a base floor price of 163,639 yuan per square meter. Bidders include China Overseas Property, China Merchants Shekou, and local heavyweight Xufang.