(Yicai) Dec. 14 -- Hangzhou and Chengdu held their first land auctions earlier this week since the price ceilings on land bids in big cities were lifted in September, and developers scrambled to get their hands on prime plots, with prices soaring to record levels in some places. But there was little effect on the sales of more out-of-the-way land parcels.

There was heated bidding for a residential parcel of land in Chengdu’s downtown Jingjiang district with 26 developers vying for it. After over 70 rounds of bidding, the plot eventually sold for CNY23,500 (USD3,311) a square meter, a record for residential land in the city in southwestern Sichuan province, and a premium of 43.3 percent.

But some plots in less sought-after areas failed to sell, despite the relaxed rules which were brought in September to boost a sluggish real estate market. Shenzhen and Jinan were the first two cities to auction land without price ceilings.

Chengdu raked in CNY4.6 billion (USD648.2 million) for the sale of the land use rights to eight plots. Three plots sold at a premium, with an average premium of 18 percent. Three changed hands at the asking price and one went unsold.

While Hangzhou put 10 lots up for bidding on Dec. 12 and bagged CNY13.4 billion (USD1.9 billion). Five of these sold for more than the asking price, with one reaching a premium of 38.3 percent, but the average premium was 10.5 percent. Four sold at the starting price and one went unsold.

Judging from these results, developers are paying more attention to land, especially prime plots, an investment manager at one of China's top 20 property firms told Yicai.

Editors: Tang Shihua, Kim Taylor