Land auction bidding policy relaxed

• Source: Global Times
• [09:26 August 10 2010]
• Comments

A cameraman films land auction records. Municipal authorities Monday released 13 land plots that will be put up for auction according to relaxed policies. Photo: CFP

By Li Xiang

Shanghai land resource authorities have relaxed their policy on bidding for land in a move that insiders have said is aimed at boosting the subdued property development market.

"The authorities really need the overall property market to warm up, and are looking to encourage property developers to loosen their purse strings," Lu Qilin, deputy director of the research center of UWin Real Estate Consultancy, told the Global Times Monday.

Shanghai Municipal Bureau of Planning and Land Resources recently announced that they have adjusted the pre-application procedures for land bidders.

In the past, a land plot could make its way to auction only if at least three property developers had expressed an interest in the plot. Now, both this precondition and the cap on the amount that land can fetch have been removed.

A staff member surnamed Xu from the marketing department of Vanke, China's largest real estate developer, said he is more cautious than optimistic towards the changes that the more flexible policy might bring.

"Given the fact that land prices are not low, property developers won't be much affected by the change in policy," Xu said.

From the end of April to last Friday, the city had auctioned 66 land plots, while another 20 that were put up for auction failed to find a buyer.