China Amend and Consummate Glebe Accommodate System

State-owned land transfer system is expected to include the legislative procedure. Recently, the Ministry of Land and officials said the department rules for two years, the implementation of normative documents for one year to assess and clean up after, Ti Chu Li, revision, and cancellation of the comments or suggestions, including reform of the current land transfer system, which ranked. Industry insiders, the land transfer system, revision and improvement of land transfer is intended to improve the efficiency of the release of an effective land supply.

In fact, since 2004, “8.31” deadline, the state-owned land use right transfer as the key to the system, “Dr. auction and” always there “for places inefficient” issue. In recent years, with land prices rising, to the king emerged, many questions facing the land transfer system.

Linked to the existing system of bidding, auction and transfer procedures, local governments and developers are there, “restricting the supply of + prop up prices,” the interests of the impulse and the implementation of the possible. For example, lead to the phenomenon of social concern to the king acts on malicious speculation.

Control of land supply in the hands of local government, land sold for high prices high for the local government revenue. The room exists between the joint enterprise relationship, if a house stands at the proposed transfer of land next to the joint project under development, development projects and large body mass, then the house or its associated enterprises be a simple “warning to the” will land prices can fry up, then drive around the prices of real estate, from which excess interest earned.

This interest in the chain, more and more scarce urban land, land prices and housing prices rose linkage. Local governments and developers can easily through the “tun” to get the land value-added benefits, “difficult” for land development and consolidation of work, due to meager profits and not be optimistic developers, the market rule of supply increase also increasingly become the “empty talk.”

To this end, land bidding, auction and pay system need to be amended and improved. Although the direction of the system must adhere to, but its problems must be resolved. Such procedures are not rigorous, business rules, imperfect, industrial land bidding, auction and not so linked to openness. The “highest bidder” in the main rules of the game is more need for change.

February 24, Beijing adopted “dark mark” means the land transfer, public transfer of the land, Chaoyang District, often doing the final transaction price higher than market expectations of 6.5 billion below the 2 billion yuan. Shanghai Xinzhuang Land Transfer also uses tender, which tender the amount of only 30% of all the evaluation session, the price is no longer a decisive factor in land auction.

In fact, earlier this year, land bidding, auction and adjust the system has begun hanging, Beijing and other places of the basic program for the abandoned “the highest price offered was” in trading, try to extensive use of integrated appraisal in the way transfer Tude to reduce the evaluation of land Jiage the proportion of indicators; or marked by dark, or unknown number of bids the same time, competitors offer organizations, programs and other information in the case of bids, and then at the same time opening the program the best person to land. In this mode, the on-site face to face to avoid the process of price soared.

Recently, there was news, Land Department has completed bidding, auction and hang the pilot reform of programs, modify the bidding, auction and Gua next step methods and revised “Land Administration Law” program, the relevant Neirongjianghui into Falvguifan; in the land transfer system reform , may apply to implement pre-land transfer system, to explore ways of integrated appraisal of land transfer.

Through a period of trial operation, Beijing edition of land bidding, auction program has been linked to the early results for the land temperature, but also improve efficiency for land and increased for land size. Insiders pointed out that the land transfer system in correction of the objective is to further break the monopoly of government land, weaken price competition. This will help prevent rent-seeking, corporate conspiracy to prevent the room, but also help to improve the rate of land transfer and expand the effective supply.

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