Mainland property markets continue to heat up, with the price of a plot of land setting a year-to-date high in Sichuan's capital, Chengdu.
Poly Real Estate Group, the country's second-largest developer, bought the mixed-use plot in the city's embassy area for 1.22 billion yuan (HK$1.38 billion) or 3,487.50 yuan per square metre of available gross floor area. That was 38.64 per cent higher than the reserve price of 880 million yuan.
The land, which offers 401,957 square metres of gross floor area, was the most expensive in Chengdu in terms of unit price and total consideration so far this year.
Still, the deal did not set a record for the city. A 54,857 sqmetre plot in Hongxing Lu, Jinjiang district in the city centre, which Wharf (Holdings) acquired for 7.24 billion yuan in September 2007 at a unit price of 16,497 yuan per square metre, remains the city's most expensive site.
'The site [acquired by Poly] is in the traditional premier residential district, and the transaction price is reasonable,' said Philip Tsui Wai-leung, a deputy general manager at property broker Midland China's Chengdu office.
Limited new supply in the district and the city's first underground railway, which will run through a neighbouring area from next year, would help boost home prices and arouse buyer interest, he said.
