Greenland Group Group has agreed to pay RMB7.25 billion ($1.07 billion) for a prime Shanghai plot — making it China’s most expensive piece of land.
China Overseas Land & Investment made the purchase for a parcel in the city’s Changfeng area.
The gross-floor-area price for the latest plot, located on Longhua Road (seen in a brownish shade in our map running parallel with the Huangpu) with a view of the Huangpu River, was RMB27,231 per square meter. Analysts thought this a little over the top and said it could boost operational risks for Greenland amid market uncertainties.
Shanghai-based Greenland said in a statement that the price of the land, which will be used for commercial, office and residential development, was reasonable considering its prime location and the city’s economic growth.
The deal also fits well with Greenland’s business strategy. The company has two other projects in nearby areas that will allow for synergies in development, according to the statement.
Shanghai Daily reported industry insiders said new residential projects in the same area sell for between RMB35,000 and RMB40,000 per square meter. Greenland may ask for more than RMB45,000 yuan per square meter for the first phase of the project.