Hang Lung Properties paid 415 million yuan (HK$471mn) for a site in Wuxi, its second acquisition in a week, signalling growing developer optimism in the market.

The accommodation value works out at 3,842 yuan per square metre, about 43% higher than the price the firm paid for an adjacent site in December 2006.

Hang Lung said it would develop a shopping centre and offices on the site at an investment cost of 3.5 billion yuan.

The developer bought the first site in Wuxi for 685 million yuan, or an accommodation value of 2,868 yuan per square metre.

South China Morning Post