China Real Estate Bubble: Gold Miner Parent Becomes Shanghai Land King

What better sign of a bubble in land sales than a gold miner, amid a revival in the sector and with a depreciating currency to spend, opts to buy land in China instead of productive mining assets. This is not the listed stock (600547), which only holds mining and processing assets. Still, the parent company thinks it a far better use of capital to spend on record high land prices instead of still depressed gold mines.

The real estate division of Shandong Gold Group has purchased a 3.1 billion plot of land in Shanghai, making it the new land king. The sale price is over 50,000 yuan per sqm. However, the new pricing scheme is in effect (in accordance with regulators' wishes) where instead of competing on price, above a certain level the competition switches to affordable housing and public facilities. As a result, Shandong Gold's real estate division effectively paid 92,506 yuan/ sqm of undeveloped land, and the final cost will rise well above 100,000 yuan/ sqm once construction costs are included.
July 29, after a 8.8 billion won gold two days during the year the total price of the king of Shanghai, Yangpu New Jiangwan Town N091101 unit A4-01 (B3) Lot has also entered into the auction site links. After the final competition for more than an hour of intense, financial letter to total 3.155 billion yuan won the first prize.

After calculation, the land auction floor price of 52,840 yuan / square meter, a premium rate of 51%. Excluding public facilities, affordable housing and self-sustaining part of salable part of the actual floor price of 92,506 yuan / square meter, future guaranteed price will be 10 million or more, a new Jiangwan City budding unit to the king.
Caijing: 融信“大战”山东黄金 31亿夺下上海新江湾城地王

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