On October 21st, a commercial office land was sold in Xuhui District, Shanghai, which was won by Xiaomi Technology at a base price of RMB 1.55 billion and accommodation value of RMB31,001 psm. The lot is 16,600 square meters with plot ratio of 3 and GFA of 49,900 sq m. It is located by the Huangpu River and belongs to the Shanghai West Bank Financial City Expansion Area. The lot extends to Zhaofeng Road in the east, Longhua Middle Road in the south, Damuqiao Road in the west, and a vacant land in the north, and it is 500 meters away from Damuqiao Station of metro Line 4 and Line 12.
The land is located at the West Bank Financial City Expansion Area of Xuhui District, with focus on the development and construction of an internationally competitive AI, life and health, art media, and financial technology industry cluster, and it will be a highland for financial headquarters, innovative technology corporate headquarters and R&D centers, highly integrating finance, Internet of Things, smart manufacturing and smart applications. The land is expected to become Xiaomi Shanghai headquarter, bringing together mobile phone R&D, financial, and internet business.
The land transaction reflects the confidence of buyers from the new economy sectors, represented by TMT companies, in the strong recovery and long-term development of Shanghai economy, as well as their optimism about stable growth assets. Based on the recent steady recovery of Shanghai economy and the frequent transaction of financial and technology self-use buyers, it is expected that the office market leasing and transaction demand would continue to rise, and the capitalization rate would remain stable.