(Yicai) July 2 -- Shanghai has wrapped up land auctions for the first half of this year, raking in CNY43.6 billion (USD6.1 billion) from the sale of 17 plots, with premiums growing during the latter rounds after a slow start to the year.

After two-thirds of land parcels sold at the starting floor price in Shanghai's first and third auctions in the first half, highlighting developers' conservative acquisition strategies, and the sole plot in the second round sold at a premium of just 6.4 percent despite being located in the downtown, premiums significantly improved over the last two auctions, according to the latest data released by China Index Academy.

During the fourth land auctions for the year, the five land parcels sold at an average premium of 34 percent, with the highest reaching 41 percent and only an outer suburban plot selling at the floor price. Five plots were also sold in the fifth round that ended June 30, with an average premium of 21 percent and a high of almost 30 percent.

In the last auction, a plot in Jiading district was sold to Greentown China Holdings after 43 rounds of bidding among three builders for CNY29,200 (USD4,300) per square meter, representing a 19 percent premium. The same developer secured a plot in Pudong New Area after 89 rounds of bidding with five others for CNY33,700 per sqm, representing a premium of 20 percent.

Such a fierce bidding for suburban plots has rarely been seen at land auctions in Shanghai over recent years, signaling that developers have revised their outlook on the city's property market, industry insiders told Yicai. Leading players showed a far stronger investment appetite than at the start of the year, with competition expanding from central districts to well-developed suburban areas with steady housing demand, they said.

The market's attention has turned to Shanghai's sixth auction of the year, which is scheduled for July 28. A land parcel in Yangpu district's Pingliang Community, with a starting price of CNY11.9 billion, is drawing the most interest among the three available plots.

After deducting the commercial portion, the floor price derived from the starting price of the Pingliang land parcel would reach to a record high of CNY77,000 per sqm for the subdistrict. Boasting a massive development size and prime location advantages, the parcel's actual auction price will be closely monitored by market participants as a key barometer for predicting the trajectory of the city's housing market.

Editors: Tang Shihua, Martin Kadiev