(Yicai Global) Feb. 17 -- Beijing’s first land rights’ sale of the year secured CNY48 billion (USD7.6 billion) for the local government at a 4 percent premium as the country’s real estate market shows signs of picking up.

Some 50 developers fought over 18 residential plots at a combined starting price of CNY49.2 billion (USD7.8 billion) in the country’s first round of land auctions this year which ended yesterday, according to Yicai Global research. One plot remained unsold.

A number of land parcels were highly contested. One plot in Cuigezhuang, central Chaoyang district was finally sold to Huangzhou-based developer Greentown China for a price of CNY4.3 billion (USD678.9 million) after 55 rounds of bidding, a 13 percent gain on its asking price of CNY3.8 billion (USD600 million).

Last year, the capital held three rounds of land auctions with a cumulative turnover of CNY190.5 billion (USD30.1 billion). Compared to the last two rounds, sales were a lot better this time, analysts said. One reason is that the plots offered were mostly in good locations, which encouraged developers to bid. Also, if the land is acquired at the beginning of the year, developers should be able to get a return before the end of the year.

But the bidding round was still less active than the same period last year, they said. Real estate developers remain under financing pressure and so demand for land has weakened.

Other cities, such as Fuzhou in southeastern Fujian province and Hefei in eastern Anhui province, have said they will start this year’s land auctions soon, most probably around mid-March.

Last year 22 cities across China sold land through centralized auctions. Before that, land rights were sold in small batches through multiple auctions.

Editors: Dou Shicong, Kim Taylor