Purchase of two Qibao land parcels to raise developer's profile in Shanghai

CHINA Vanke Corp acquired two adjacent land parcels today in Shanghai's southern Minhang District through public bidding as the nation's leading developer further consolidates its presence in the Qibao area.

The two plots, both designated for commercial and office development, are located in the Qibao Ecological Business Zone, with convenient access to two metro lines as well as the Outer Ring Road.

One parcel, covering an area of 22,889 square meters, was sold for 1.495 billion yuan (US$228 million), or a gross floor area price of 18,660 yuan per square meter. The other plot, covering an area of 30,323 square meters, fetched 1.698 billion yuan, or a gross floor area price of 19,300 yuan per square meter. The starting price for the two land plots was 1.489 billion yuan and 1.698 billion yuan respectively, according to documents posted earlier on the city's official land website.

"Vanke has already got a couple of projects — both residential and commercial — in the Qibao area, and the latest addition of two plots in the same neighbourhood will further strengthen its brand in the area," said Lu Wenxi, senior manager of research at Shanghai Centaline Property Consultants Co. 

"Commercial prospects for the two sites also seem quite good as they are only about 700 meters away from Hangzhong Road station of Metro Line 10, while mature residential communities, as well as the Minhang Culture Park, are also in close proxity."