(Yicai Global) March 24 -- Dahua Group, a Shanghai-based property developer, has won a plot sold in Beijing’s first land auction this year which attracted more bidders than ever.

Dahua paid CNY1.3 billion (USD189.9 million) for the residential plot which lured 42 developers to bid, according to the official website of the Beijing Municipal Commission of Planning and Natural Resources. The process began on March 22 and after 30 offers, the price cap was reached. Hence, the buyer was determined by drawing lots.

Among the record-high number of 42 bidders in Beijing, 11 entered the market for the first time as the city has lowered its bar to participate, according to data disclosed by the China Index Academy. Some of the firms do not count real estate development as their main business.

The above-mentioned piece of land in Changping district is small but promising, Zhang Xiaofei, senior analyst at the real estate research institute, told Yicai Global. The floor price is CNY35,475 (USD5,181) per square meter, while the government-guided sales price of finished houses is CNY62,000, which means that the investment is likely to turn out quite profitable, he added.

The location is also superior as the plot is close to good transport links and industrial parks so the future housing may quickly sell out, industry insiders said.

Founded in 1988, Dahua focuses on property development and the renovation of old urban districts. The firm has developed property for 17 large residential communities, involving more than 700,000 homeowners, according to its website.

In the same auction, another parcel of land in Changping district only attracted one bidder, Beijing Capital Development, and was sold at a reserve price of CNY2.7 billion.

Editors: Dou Shicong, Emmi Laine, Xiao Yi