Prices were lower than expected when three plots of residential land were auctioned in Shanghai yesterday, the first plots sold since the city's launch of the property tax.

Two plots in the Pudong New Area sold at a house price of 4,200 yuan (US$636) and 3,700 yuan per square meter to two Shanghai-based developers. Both had previously indicated they would bid higher than 5,000 yuan per square meter.

Another plot in Baoshan District was sold to Sino-Ocean Property Holdings, a state-owned property developer, at 11,000 yuan per square meter, compared to the 20,000 yuan for nearby land previously.