In a major test of developers' confidence in the Shenzhen property market, the municipal government will offer for public sale next month three adjacent lots with a combined value estimated at between 1.8 billion yuan (HK$2.04bn) and 2 billion yuan.

The sites, designated for residential and retail use in Baoan - a new residential district - provide a combined gross floor area of 406,000 square metres. The auction will be held on 2 June. All three sites must be sold in one go.

'This will be a new barometer for the market outlook,' said a Shenzhen-based developer, predicting keen competition among builders amid the growing belief that the market was on the way to recovery.

South China Morning Post