A LAND parcel in Tangzhen in the Pudong New Area became the most expensive residential plot sold in Shanghai in more than two years when it fetched over 3.7 billion yuan (US$594 million) yesterday.

The gross floor area price for the 122,018-square-meter land was 18,199 yuan per square meter, or 65 percent above its starting price.

Shanghai Pudong Development (Group) Co beat seven other firms, including Poly Real Estate and China Overseas Property, at the auction.

"This is the most costly land parcel sold in the city since 2011 in terms of total price," said Zhang Wanyu, an analyst with Soufun.com, operator of the country's largest real estate website. "Due to rather limited supply in that area, parcels in Tangzhen have always been popular among developers."

Since 2008, seven residential plots, excluding the latest one, had been sold in Tangzhen. They were sold for an average 104 percent higher than their asking prices, according to Soufun research.

The average GFA price for land parcels in Tangzhen was 4,000-5,000 yuan a square meter in 2008 but surged to 19,040 yuan per square meter when China Greentown acquired a 58,163-square-meter plot in December 2009, according to Soufun.