(Yicai) April 24 -- Luxury properties priced above CNY10 million (USD1.5 million) have become popular targets during judicial auctions in China, with some of them selling at incredibly high premiums.

A property in Shenzhen's Futian district, which was listed for auction on April 14 at CNY15 million, was sold at CNY33.6 million after 35 rounds of bidding involving 18 participants, according to Alibaba Group Holding's judicial auction platform. This represents a premium rate of 123 percent.

A villa in Beijing's Chaoyang district was put on auction on April 17 at a starting price of CNY8 million (USD1.2 million), and it was ultimately sold after 161 rounds of bidding from 26 individuals for CNY14 million, a premium rate of over 70 percent, according to the Hanhai Data Research Institute.

Second-hand luxury homes are often located in prime city areas, surrounded by well-established top-tier facilities, Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, told Yicai. For many buyers, they are rare and valuable assets worth holding onto, he noted.

The increase in transaction and premium rates for luxury homes in judicial auctions also reflects the real estate market's recognition of the value of properties in core areas and an overall restoration of confidence, Li explained.

Moreover, compared to those of similar properties in the surrounding areas, the starting prices of luxury homes in judicial auctions often offer a certain level of discount, which attracts investors to participate in the bidding, he added.

Second-hand luxury houses in Shenzhen are mainly concentrated in areas known for their strong asset preservation and appreciation capabilities, such as Xiangmi Lake, Houhai, and Shenzhen Bay, according to Li. In addition, local courts have implemented a series of measures to help judicial auction buyers avoid potential risks related to delivery difficulties and unclear tax obligations.

Editors: Tang Shihua, Futura Costaglione