AsianFin--Real estate developers are expressing strong confidence in Hangzhou's housing market, as evidenced by two of the three land auctions held in the city yesterday, which concluded with sales at premium prices.

One notable sale involved a piece of land located in downtown Hangzhou near a metro station, which attracted bids from 13 developers. The plot sold for 36,259 yuan (US$5,071) per square meter, a 24% increase over its starting price and the highest price per square meter in the area since 2018. Another plot was auctioned at nearly an 18 percent premium, while the third plot was sold at its base price.

The significant premiums and the fact that all three plots were secured by private developers indicate a strong bullish sentiment towards Hangzhou's land and property markets, according to industry insiders quoted by Yicai. This is in contrast to other Chinese cities, where private developers have largely retreated, leaving the land market dominated by state-owned enterprises and local government financing vehicles.