POLY Real Estate Group Co, China's second-largest developer by market value, has bought two plots of land for 4.2 billion yuan (US$558 million) to build homes in the southern Guangzhou City.

The company paid 2.12 billion yuan for an 86,347-square-meter site and 2.08 billion yuan for a 91,579-square-meter plot at an auction on Tuesday, Guangzhou-based Poly said in a statement to the Shanghai Stock Exchange yesterday, Bloomberg News reported.

China's real estate price growth accelerated in August as decade-high inflation encouraged households to speculate in the property market, analysts reported.