(Yicai) June 20 -- Shanghai raked in CNY19.2 billion (USD2.7 billion) from the sale of five residential land parcels on the first of two days of its latest land auction, making it the city's largest in the first half of this year.

Four major developers and two consortium went through 95 rounds of bidding for a plot in Yangpu district's East Bund area yesterday. Poly Developments & Holdings Group bought the land for CNY3.5 billion (USD486.9 million), representing a 31 percent premium, with a record floor price of CNY95,530 (USD13,290) per square meter for the district.

The fierce competition for the Yangpu parcel stemmed from the high sales prices of surrounding properties, with a project by Hong Kong-based Shui On Land that entered the market last July selling at an average of CNY210,000 (USD29,215) per sqm.

The latest auction is the largest land sale in Shanghai in the first half of this year, Zhang Wenjing, general manager of Shanghai Data at the China Index Academy, told Yicai. The first-day results show that high-quality plots continue to be sought after by developers, Zhang added.

Among the other four land parcels sold on the first day, one in Minhang district also saw intense competition and cost CNY38,775 per sqm, a 13 percent premium. However, the premium of a plot in Baoshan district was only 1.2 percent due to its large project scale.

The two other plots, which are in remote suburbs, received mixed market attention. The first was located in Jinshan New Town, the administrative center of Jinshan district, selling at a 9.8 percent premium, while the other was in Qingpu district and sold at the starting price.

With the continuous increase in the supply of high-quality new homes and the sustained release of policy support effects, Shanghai's real estate market performance will likely stabilize, Zhang pointed out.

Editors: Tang Shihua, Martin Kadiev