Chinese Developers Share Risk, Costs of Land Sales

Chinese developers are sharing the load on land sales, in an effort to spread costs, risks, and keep prices from rising.

Caijing: 全国土地市场深度降温 房企联合拿地分摊风险
A development business people told the "Economic Information Daily" reporter, most companies do not want to appear this kind of joint competition in the way. However, the current situation, on the one hand the land market is less than demand, if the business will compete between their bidding will lead to fierce competition, easy to raise land prices, increase land costs; , Fierce competition to push up land prices is likely to lead to plots hit the government limit the highest price and standard; In addition, the joint development can also share the risk. To participate in the consortium to take, to reduce the game between enterprises, from multi-input to win.

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