(Yicai Global) Sept. 28 -- Shanghai has raised CNY105.4 billion (USD14.6 billion) in its third auction of land use rights this year, the highest amount ever.

Thirty-five plots for residential housing were successfully auctioned off at an average premium of 2.45 percent, according to data from real estate think tank China Index Academy. This equates to an average floor price of CNY29,365 (USD4,064) per square meter. The premium was somewhat lower than in the second land auction in July at 4.5 percent.

Bidding was particularly fierce for a parcel of land in Huacao town, western Minhang district, close to the Hongqiao transport hub and central business district. Ten bidders went head to head, with New Nanshan Holding eventually submitting the winning bid of CNY1.7 billion (USD235 million) at a premium of nearly 9 percent. This worked out at CNY38,136 (USD5,277) per square meter.

Considering the plot is not large, the good location will make it even easier for the Shenzhen-based developer to sell the properties and recoup its investment, Lu Wenxi, an analyst at Shanghai Centaline Property, told Yicai Global.

Some plots with lower starting prices attracted many small and medium-sized developers to take part. Newcomers Rugao Hesheng Real Estate and Beicheng Xiangyuan Real Estate Development from neighboring Jiangsu and Anhui provinces each secured a plot of land in Shanghai for CNY441.7 million (USD61.7 million) and CNY484 million, respectively.

Private property firms are becoming more confident in the Shanghai real estate market and hopefully this will continue as the market needs a boost, Lu said. Shanghai was badly hit by a string of Covid-19 outbreaks in the first half and did not hold any land auctions this year until June.

The municipality has raised CNY266.9 billion (USD37 billion) through the sale of the land use rights for 105 plots in three rounds of auctions this year, the China Index Academy said.

Editors: Dou Shicong, Kim Taylor