In Depth:Record Land Prices Return as Developers Bet on Prime Plots

Bidding wars for small plots in coveted areas are fueling a resurgence of ‘Land King’ deals, a sign of recovery for China’s struggling property market

The once-dormant land auction market in Chengdu, the sprawling capital of Sichuan province, has sprung back to life this spring with a flurry of record-breaking deals.

In mid-March, China Merchants Property Development Co. Ltd. secured a residential plot in the city’s High-Tech Zone after an intense 130 rounds of bidding. The state-owned giant beat off a dozen of rivals, paying a record 31,700 yuan ($4,346) per square meter of floor space — a 70% premium over the starting price.

The record was short-lived. Only two weeks later, C&D Real Estate Co. Ltd., another state-backed developer from Xiamen, East China’s Fujian province, shattered it by paying 41,200 yuan per square meter for a parcel in Chengdu’s Jincheng Lake financial district, more than double the initial asking price.

Chengdu is far from alone. Fierce bidding wars for prime urban land are re-emerging across major Chinese cities. According