Highest bid may not win site in Beijing, under new policy
The highest bidder in a
It is the second official move in two days to cool down the mainland's booming property market.
The Beijing Municipal Bureau of Land and Resources said yesterday sites would now go to the bidder offering not the highest but the most reasonable price, China Central Television reported.
It also said a winning bidder must be able to afford to develop housing for lower-income groups and to provide amenities such as clinics, schools and parks.
The bureau said it would suspend the sale of sites in prime locations, where prices have been setting records. It said it would make available sites with a total area of 1,250 hectares for lower-income housing this year. That could provide a total gross floor area of 16 million square metres, 60 per cent more than last year.
While it was in effect, Hong Kong-listed Beijing North Star won a residential site in
Alan Chiang Sheung-lai, DTZ's head of residential property in
Chiang did not expect
The government's plan to stop selling sites in prime locations would be much more effective in cooling down the land market, he said.
On Thursday, the State-owned Assets Supervision and Administration Commission ordered state-owned enterprises to get out of the property market and focus on their core businesses.