Second-Tier Cities Try to Reduce Prices With Supply

Suzhou, Shenzhen and Xiamen are rushing to sell land.

For this year's "King" frequent momentum, a number of cities, local government actions to control, but the method adopted very different. Shanghai three short-term suspension of the land transfer, and Shenzhen, Suzhou, Xiamen is a rare focus on the introduction of large-scale land supply.
The approach of these cities and Shanghai is contrasted:
Also, Xiamen government in conditions of residential house area, bidding qualifications, performance bonds and land transfer payment deadlines also be restricted. 4 plots clearly requires a building area of ​​90 sq m apartment should account for over 70% of the residential area; land transaction requires five working days became due all the land transfer payments and performance bonds; completion time context, calls for pay from the start date to one year to complete the project within three years of the start date of construction. Meanwhile, the city planning, construction, administrative law enforcement departments to strengthen the linkage, the implementation of the whole process of real estate development project strict supervision.

"The government did so in order to spread the land demand around, so that more developers get to acquire land, but for some of the money is not bad, especially state-owned large enterprises, the central enterprises, then the money you can only take a piece of land. It also reduces the room rate financing leverage. "surging housing prices News quoted Xiamen, a person in charge as saying.

And Shanghai is the opposite approach - just a week concentrated suspension of the land transfer time, involving a total of four residential sites. 24, the Shanghai Putuo District, a block transfer activity is suspended; 22, the Shanghai Pudong New Area, New Town Lot Tangzhen aborted transfer; 18, Pudong New Area, Shanghai International Medical Zone 20-10,21-10 land transfer activities It is also suspended.
Shanghai is limited by supply, whereas these other cities are not. Increasing supply is the best way to lower prices while maximizing short-term revenue.

Caijing: 打击地王!苏州、深圳、厦门罕见集中大规模推地

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