Jane Chen / Shanghai Daily news

Shanghai has started the bidding for the first of the plots slated for budget housing projects, as the government announced yesterday that five property developers have won-through to the final competition, the National Business Daily reported.
Three developers reached the final via a computer-based lucky draw, while the other two succeeded by government commendation.
The sale price of the housing built on the land, 133,216.9 square meters in Pudong's Sanlin area, is set at a maximum of 5,800 yuan (US$715) per square meter, the same report said, citing sources close to developers.
Apartments of between 45 and 50 square meters will account for 20 percent of the total housing built, while those between 65 and 70 square meters will account for 70 percent and those between 85 and 90 square meters the remaining 10 percent, as required by the government.
To improve the city's housing market and ensure proper housing for low-income families, the Shanghai government has introduced a program to make a total of 10 million square meters of land available for budget housing projects.
The first batch includes 26 lots in the five districts of Pudong, Baoshan, Nanhui, Qingpu and Jinshan.
The Sanlin lot originally attracted more than 50 developers to bid, according to the NBD report.
"The reason for the hot market response may be because it is the first plot to be auctioned, so it is particularly attractive to developers who are eager to have an idea of how the new program will operate," analyst Bao Lingzhi of leading real estate market-consulting firm Fang Fang Housing Studio said.
"Though the first bidding stage has concluded, developers are still very anxious to learn about the polices regarding sale prices and target customers, as more such auctions will follow," Bao added.
The government held a promotion meeting last Friday to explain the new bidding system and attracted many developers, she noted.