(Yicai Global) July 31 -- Chinese property developer New World Development has bought a piece of urban land in Hangzhou for CNY9.8 billion (USD1.4 billion), the highest price per square meter in the eastern city this year. 

New World Development participated in a land development auction yesterday to win the plot at a price of CNY24,860 (USD3,609) per sqm, involving a premium of 3.93 percent, The Paper reported.

The plot is expensive as the relevant regulations stipulate that only 60 percent of the area can be used for commercial property, which places high requirements for profitability, an Hangzhou-based real estate developer told the same news source. Housing prices have risen in the touristic city recently due to its thriving economic development.

Editor: Emmi Laine