A lot of land in a prime commercial center of northeast downtown area is expected to create a new record high of land price in Shanghai at a public auction scheduled on February 22, Wednesday's Youth Daily said.

Value of the 26,000-square-meter land, the largest ever on sale at Shanghai's public land auction, is estimated at 1 billion yuan (US$121 million), according to Shanghai Auction Co Ltd, the organizer.  Bidders have to pay a deposit of 100 million yuan to join the auction.

Shanghai Auction is upbeat about the sale, citing its prime location on the south end of the Sichuan Road, Hongkou District.  The convenient traffic system around and the good commercial environment there will surely further push up the value of the land, it believed.

However, not all analysts are that confident. 

Chen Sheng, an analyst with the China Housing Index, the benchmark for the country's new housing prices, said he is "cautiously optimistic".

"Compared with other commercial centers in Shanghai as Huaihai Road, Nanjing Road and Xujiahui, Sichuan Road is lagging behind and lack of specific commercial attractions," he said.

Quoted by Youth Daily, Chen said if the buyer is able to develop projects on the land to add new attractions to the entire area, the huge price of 1 billion yuan might be deserved.

(Shanghai Daily February 4, 2005)