Land sales in Shanghai rose more than 30 percent in volume and nearly 20 percent in value during the first 11 months of this year, Soufun.com said yesterday in a report.
A total of 12.8 million square meters of land parcels, designated for both residential and commercial uses, were sold between January and November in the city, an annual increase of 31.2 percent. They were sold for 112 billion yuan (US$17.64 billion), a rise of 19.7 percent, according to Soufun, a major real estate website.
Excluding parcels designated for government-funded affordable housing development, land sales totaled 7.56 million square meters in volume and 91.7 billion yuan in value - both a rise of about 10 percent from the same period a year earlier.
But real estate developers showed lukewarm response to auctions of land parcels last month, according to Soufun.
"November witnessed an extremely slack sentiment among real estate developers with auctions for one-third of the plots canceled and nearly 70 percent of the land pieces sold at just the starting prices," said Zhang Wanyu, a Soufun analyst. "The weak sentiment among the developers may not rebound anytime soon as long as their credit situation remains tight."
Of the 37 plots offered for sale in Shanghai last month, the auctions of 12 of them were terminated due to lack of interest from buyers, according to Soufun data.
Of the 25 parcels that were successful, 17 were auctioned either at the asking prices or just above. For the remaining eight plots, seven were sold with a premium of under 10 percent, according to the data.
Shanghai's land market has been weakening, particularly since the second half of this year as real estate developers, suffering extremely sluggish sales due to government austerity measures, became more cautious in adding land banks to their inventory.