(Yicai) Dec. 20 -- The highest premiums since 2018 were paid for two parcels of land auctioned in Hangzhou, a major second-tier city in China, following a series of measures introduced since late September to reinvigorate China’s real estate market.

A consortium of developers paid an almost 77 percent premium for a plot in Hangzhou’s Xiaoshan district, with a winning bid of CNY1.799 billion (USD246.5 million), while another developer secured one in Linping district for CNY792 million (USD108.5 million) at a 49 percent premium.

The auction reflects growing confidence among developers in acquiring land in Hangzhou, Gao Yuansheng, executive vice president for eastern China at the China Index Academy, told Yicai.

House price data across China may also point to a property market stabilization after the central bank brought out measures to bolster it in late September. The decline in prices in major cities slowed last month for the first time this year.

Gao said that besides the supportive policies of both the central and local governments, the two Hangzhou land plots are in prime locations, the total cost was relatively moderate, and the development risks are relatively controllable, which further buoys willingness among builders to enter the market.

The Xiaoshan parcel in particular stood out for its well-established surrounding facilities and limited competition from other development projects in the area, Gao said. A nearby project that kicked off sales in early July, with units priced between CNY13 million and CNY21 million (USD1.8 million and USD2.9 million), sold out quickly, Gao noted.

With the end of this year looming, developers also need to replenish their land resources for next year, Gao said.

Editors: Tang Shihua, Emmi Laine