Around 40% of the 300 islands that make up The World, pictured, have been sold so far

Dubai property giant Nakheel has sold the island of ‘Shanghai’ on its man-made archipelago The World, it announced on Wednesday.

The 322,000-square foot island has been bought for $28 million by prominent Chinese businessman Bin Hu, director of real estate developer Zhongzhou International Holding Group.

Prices for islands range from $15 million to $50 million, but the total cost of developing an island is much higher as owners are expected to provide all necessary infrastructure.

Hu visited the island this week to mark the event by planting a Chinese flag in the ground and scattering earth brought back from Shanghai over the island.

Nakheel did not disclose information about potential development plans for 'Shanghai'.

Around 40% of the 300 islands that make up The World have been sold so far. Some of The World islands represent countries, while others represent cities.

Nakheel in August said it had sold the island of Greece for $15.5 million, but would not reveal details of the buyer.

However, a company spokesperson could confirm the owner is not notorious US rocker Tommy Lee, UK budget airline entrepreneur Stelios Haji-Ioannou, or Greek shipping magnate Theodore Angelopoulos, all of whom had been linked with the island.

Each year Nakheel invites 50 people, made up of mainly celebrities, business elite and royalty to come and view The World, and then if they are interested buy into the project. The next invitations are expected to be sent out in November.

Reclamation work is set to be completed in 2008, at which point the islands will be handed over to developers.