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Land Sales Scrapped in China’s Suzhou as Bids Exceed Limits

  • Bids for two parcels of land exceeded government ceilings
  • Home prices in Suzhou jumped 49 percent year-on-year in April
Updated on

Two land auctions were terminated in the Chinese city of Suzhou after bids surpassed limits set by the local government to stem a surge in prices.

Offers on Monday for two plots of land in the manufacturing city, which is 30 minutes by train from Shanghai, exceeded ceilings established in rules released last week by authorities, triggering the automatic cancellation of the online auction, according to a webpage compiled by Suzhou’s land resources bureau. Prices for the two plots, both in the city’s west Gaoxin district, were capped at 1 billion yuan ($153 million) and 2.7 billion yuan, more than double the initial asking prices, according to Bloomberg calculations based on government figures.