(Yicai) Nov. 29 -- The market for land in Shanghai is continuing to pick up, with the seventh land auction of the year setting new records for the amount and premium paid, particularly for plots in sought-after areas.

Over 20 real estate developers bid for 10 plots of land in the auction that ended yesterday, with the parcels selling for a total of CNY30.7 billion (USD4.2 billion). Seven sold at a premium and three at the starting price, with the average premium paid hitting 19.7 percent.

The Xinyangsi plot in Pudong New Area achieved a 40 percent premium, the highest in Shanghai this year. It also fetched the most, selling for CNY7.9 billion (USD1.1 billion).

Sales at developments in the area where the Xinyangsi plot is located have been good since they started, Lu Wenxi, an analyst at Centaline Property Agency in Shanghai, told Yicai. That, along with its promising future development prospects, led to keen bidding and high premiums, Lu added.

A project under construction next to the Xinyangsi parcel has sold unfinished apartments three times since the start of this year, according to data from China Real Estate Information. Although the average transaction price is as high as CNY100,000 (USD13,825) per square meter, sales have been quite good, with nearly all properties sold at the starting gate in the last two sales.

Lu noted that only a few of the 10 parcels sold in the latest auction had premiums in excess of 20 percent. When compared with the prices of nearby projects, the sales pressure on the completed developments is expected to be relatively minimal, as the bidders kept a level head, he added.

Shanghai will hold its last land auction for the year next month, Lu said, with the trend from the most recent auction expected to continue. While there may be keen bidding for desirable plots, premiums are unlikely to soar overall, he said.

Builders that have enjoyed robust sales this year are likely to remain active participants, while those with fewer land purchases to date will seize the final opportunity to bolster their inventories, Lu added.

Editors: Tang Shihua, Martin Kadiev