SHANGHAI, July 9 -- THE starting price of a land plot in the downtown Huangpu District of Shanghai is set at a record of 26,000 yuan (US$3,421) per square meter for next month's auction, the Oriental Morning Post reported today.

The price is almost 30 percent higher than the highest winning bid of 20,178 yuan set by the Sun Hung Kai Properties, for a plot in the Weifang Residential Area in Pudong New Area in 2005.

The plot, covering 13,709 square meters, is surrounded by Henan Road M., Tianjin Road, Jiangxi Road M. and Nanjing Road E. It is near Metro Line 10 station which is under construction.

Its initial bidding price is 1.7 billion yuan and its floor space totals 65,803 square meters.

The plot issued last month, by the Shanghai Housing, Land and Resource Administrative Bureau, is the best location among lands that were auctioned in recent years, the report said.

Many domestic and overseas property giants have reportedly expressed their strong interest in the plot.

The total investment of this plot would hit three billion yuan including its bidding price and construction cost.

Overseas bidders are required to have a bank account of more than US$150 million, while domestic potential buyers should have at least 150 million yuan of registered capital and a bank account of more than one billion yuan.

Bidders are also asked to submit a project plan when applying for the auction, elaborating the design and use of the plot, the report said.