(Yicai Global) Feb. 17 -- China’s real estate market is showing signs of an upswing after the year’s first land auction in Suzhou, Jiangsu province had developers placing record bids.

Bidding for a piece of land in Suzhou Industrial Park started at CNY3.2 billion (USD466.6 million) and reached the price ceiling of CNY3.6 billion after 65 rounds yesterday, according to the China Index Academy. The winner will be chosen from the 31 real estate firms that bid that amount via a lottery, it added.

The land will cost CNY35,650 (USD5,198) per square meter, a record high for Suzhou Industrial Park. Because of its good location, homes built there will likely sell for CNY53,000 per sqm, an all-time high for new homes in the city, a local real estate analyst told Yicai Global.

In the last two weeks, 500 and 660 new homes were sold in Suzhou, respecively, up from 160 a week on average last month, the analyst said. The market’s bounce is mainly due to the release of pent-up demand, and its further recovery will depend on policy support and the economic situation, the person added.

A total of six land parcels were auctioned in Suzhou yesterday for a total price of CNY8.4 billion, up about 6 percent on the starting value.

Editors: Dou Shicong, Martin Kadiev