Land parcels to be auctioned in Shanghai

Seven parcels of land in Shanghai with a combined starting price of 5 billion yuan ($809 million) will be put up for auction by the end of April, according to data from Soufun.com, an information portal for the realty market.

A piece of land in the city’s Qingpu district is one of the most popular, with 33 qualified potential bidders, of which four have applied to enter the auction.

Analysts said larger developers are currently more willing to buy land. Developers still have concerns over future policies that may further tighten controls over the realty market, which may have an impact on bidders' interest on land parcels.

A source with a Shanghai-based developer said demand for land parcels in prestigious locations outweighs supply, which may push up premium rates for such land at auction.