The new regulation of Dongguan land auction is no longer "those with high prices have to increase the code to control the cooling of prefectures and cities."-Shanghai Metals Market

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The new regulation of Dongguan land auction is no longer "those with high prices have to increase the code to control the cooling of prefectures and cities."

Translation 09:31:28AM Jun 10, 2019 Source:Brokerage China
The content below was translated by Tencent automatically for reference.

SMM News: recently, Dongguan issued new rules for land auction, the first "closest to the average price" of the land online bidding, no longer "high price", causing market attention.

The reason why Dongguan introduced the new land auction policy, and the recent rapid warming of the land market, dozens of housing enterprises grab a case of land, buyers from the price increase locked in advance of the land, the premium rate is high and so on frequently.

It is worth noting that recently, Suzhou, Hefei and other cities with overheated land markets have tightened real estate regulation and control policies one after another. Industry insiders predict that the "prefectural and municipal fever" triggered by second-tier hot cities may be brought under control.

Dongguan pioneered the new rule of "those closest to the average price"

On June 6, Dongguan Public Resources Trading Network issued the final quotation rules after the online trading of land and resources reached the upper limit.

According to the New Policy, after the transaction of Dongguan's land and resources online trading system has reached the upper limit, the trading system will suspend the acceptance of new quotations and switch to the online final one-time quotation method (referred to as "final quotation" for short). The method of bidding for the candidate shall be determined on the basis of the principle that the final quotation is closest to the average price of all final quotations, and the quoted price shall be determined as the final offer for the land.

These rules shall apply to the online listing of land and resources for which an upper limit is set for competitive self-holding, competitive construction, etc., and where it is necessary to determine the candidate through the final quotation.

Who is qualified to make the final offer?

The new policy stipulates that bidders who have submitted at least one valid offer before the final offer will automatically be eligible for the final offer. Bidders who have not submitted a valid offer will not be eligible for the final offer until they agree to accept the upper limit offer during the qualification confirmation process. Bidders who are not eligible for the final offer are not allowed to participate in the final offer.

How do I make a final quotation?

A valid bidder can only bid within a specified range of quotations at the end of the bidding session. The final quotation range is the maximum price of land transfer to not higher than the maximum price plus a quotation.

How do I identify the final bidder?

1. If there is no valid offer in the final quotation, the bidder who is the first to quote the upper limit shall be the candidate.

two。 According to the results of the final offer, there is only one valid offer, which determines the candidate. For two or more valid quotations, the average price shall be calculated according to the valid quotation. If the absolute value of the difference between the quoted price and the average price is the smallest, if the absolute value is equal, The candidate is determined to be the lowest absolute value and above the average price.

3. After the end of the final quotation link, the quotation record will be published in the bidding system to determine the candidate.

Dongguan prefecture and city heats up, many plots are locked in advance

The reason why Dongguan introduced the new land auction policy, and the recent rapid warming of the land market, dozens of housing enterprises grab a case of land, buyers from the price increase locked in advance of the land, the premium rate is high and so on frequently.

It is understood that since May, a number of parcels have been locked in advance.

On May 7, Poly won Wanjiang Shengli Community Commercial and Residential Land with 3 billion yuan, the premium rate was 46%, and the proportion of commercial self-support was 100%. It is worth noting that in the absence of other bidders, Poly itself has continuously increased its price to the maximum limit of 3 billion yuan, and has continuously increased the proportion of its own commercial area, and finally conducted 30 rounds of bidding on its own. In the listing deadline of 13 days ahead of lock in advance of the plot, this is also the first time the Dongguan earthen market has been locked in advance of the situation.

On May 15, Pengrui Real Estate, also without other bidders, alone carried out 29 rounds of fare increases and reported the proportion of commercial self-held area, and finally competed for the Nancheng Yayuan commercial and residential land at the price of 2.36 billion yuan + 100% of the commercial self-owned ratio. The premium rate was 159%, which locked the plot 2 days ahead of the listing deadline.

On May 16, Rongchuang won the commercial and residential land in Shatian Town at the cost of 1.023 billion + 40 years of commercial part. The premium rate was 50%. The whole online bidding process took only 29 seconds, 17 days ahead of the deadline for listing.

On May 22, the first property won Wangniudun commercial and residential land at the cost of 946.5 million + 40 years of commercial partial self-support, with a premium rate of 24%. The whole online bidding process took only 24 seconds, 16 days ahead of the listing deadline.

In April this year, the Dongguan land market began to heat up.

On April 17, China Shipping won the first piece of commercial and residential land in Dongguan at the beginning of the year with 1.438 billion. At that time, 27 housing companies took part in 62 rounds of sha, and the number of bidding enterprises reached the highest level in the Guangdong-Hong Kong-Macau Greater Bay Area local auction market so far this year.

With the release of Guangdong-Hong Kong-Macau Greater Bay Area's development plan this year, many brand housing enterprises have rushed into this bay area town, land transactions are also hot.

The regulation and control of adding more codes to cool down the prefectures and cities.

It is worth noting that in March 2017, Dongguan issued policies to regulate and control the real estate market, such as purchase restrictions, loan restrictions, and price restrictions, which also included innovative land supply conditions. To explore the new real estate land transaction methods, such as "limited land price, competitive construction of talent housing (indemnificatory housing)", "limited house price, competitive land price" and so on, so as to promote the rational and stable land market and strictly control the excessive rise of land price.

Now, the rapid warming of the land market has once again triggered an increase in regulation.

Yan Yuejin, director of research at Yi Ju think tank, said in an interview that the new policy of local auction in Dongguan cracked the "high bidder get" model, innovatively adopted the "final quotation" model, and determined the bidder through the model closest to the average price of the final offer. It has a positive effect on the whole land market price, because the highest quotation does not necessarily get the land, which makes it more rational for enterprises to get the land. Some of the land acquisition budgets are not many, but the offer is the closest and also has the opportunity to get the land. It can also better reflect the fairness of land acquisition.

Li Yujia, a researcher at the Guangdong Provincial Housing Policy Research Center, also believes that a one-off final offer, based on the nearest average price, can first eliminate developers with high risk tendencies and high leverage. Secondly, because the winning bidder has no influence on the final price, all bidders will show their true evaluation of the land based on the market fundamentals, and the final housing supply is also the best.

Prior to this, Suzhou, Hefei and other cities with overheated land markets have tightened real estate regulation and control policies one after another, including adjusting the bidding rules for land sales. After the Ministry of Housing and Construction issued two early warning tips for cities with large fluctuations in house prices and land prices, the CIRC also requested that the chaos of real estate financing, including banks and trust funds, be used to seize land in violation of regulations. Recently, housing financing has also been tightened, some housing enterprises will be asked if they have taken the "land king" and other issues when they apply for bonds.

Li Yujia believes that the Suzhou Land auction New deal on May 11 has proposed that after the land bidding exceeds the market guidance price by 10%-25%, it will be changed to a quotation and transfer method. Dongguan, which is also a "new first-tier" city, has also put forward a similar model, which can be regarded as the landing result of the long-term mechanism of the property market. As a result, it can be expected that the "prefectural and municipal fever" caused by second-tier hot cities (including "new first-tier" cities) may be brought under control.

The new regulation of Dongguan land auction is no longer "those with high prices have to increase the code to control the cooling of prefectures and cities."

Translation 09:31:28AM Jun 10, 2019 Source:Brokerage China
The content below was translated by Tencent automatically for reference.

SMM News: recently, Dongguan issued new rules for land auction, the first "closest to the average price" of the land online bidding, no longer "high price", causing market attention.

The reason why Dongguan introduced the new land auction policy, and the recent rapid warming of the land market, dozens of housing enterprises grab a case of land, buyers from the price increase locked in advance of the land, the premium rate is high and so on frequently.

It is worth noting that recently, Suzhou, Hefei and other cities with overheated land markets have tightened real estate regulation and control policies one after another. Industry insiders predict that the "prefectural and municipal fever" triggered by second-tier hot cities may be brought under control.

Dongguan pioneered the new rule of "those closest to the average price"

On June 6, Dongguan Public Resources Trading Network issued the final quotation rules after the online trading of land and resources reached the upper limit.

According to the New Policy, after the transaction of Dongguan's land and resources online trading system has reached the upper limit, the trading system will suspend the acceptance of new quotations and switch to the online final one-time quotation method (referred to as "final quotation" for short). The method of bidding for the candidate shall be determined on the basis of the principle that the final quotation is closest to the average price of all final quotations, and the quoted price shall be determined as the final offer for the land.

These rules shall apply to the online listing of land and resources for which an upper limit is set for competitive self-holding, competitive construction, etc., and where it is necessary to determine the candidate through the final quotation.

Who is qualified to make the final offer?

The new policy stipulates that bidders who have submitted at least one valid offer before the final offer will automatically be eligible for the final offer. Bidders who have not submitted a valid offer will not be eligible for the final offer until they agree to accept the upper limit offer during the qualification confirmation process. Bidders who are not eligible for the final offer are not allowed to participate in the final offer.

How do I make a final quotation?

A valid bidder can only bid within a specified range of quotations at the end of the bidding session. The final quotation range is the maximum price of land transfer to not higher than the maximum price plus a quotation.

How do I identify the final bidder?

1. If there is no valid offer in the final quotation, the bidder who is the first to quote the upper limit shall be the candidate.

two。 According to the results of the final offer, there is only one valid offer, which determines the candidate. For two or more valid quotations, the average price shall be calculated according to the valid quotation. If the absolute value of the difference between the quoted price and the average price is the smallest, if the absolute value is equal, The candidate is determined to be the lowest absolute value and above the average price.

3. After the end of the final quotation link, the quotation record will be published in the bidding system to determine the candidate.

Dongguan prefecture and city heats up, many plots are locked in advance

The reason why Dongguan introduced the new land auction policy, and the recent rapid warming of the land market, dozens of housing enterprises grab a case of land, buyers from the price increase locked in advance of the land, the premium rate is high and so on frequently.

It is understood that since May, a number of parcels have been locked in advance.

On May 7, Poly won Wanjiang Shengli Community Commercial and Residential Land with 3 billion yuan, the premium rate was 46%, and the proportion of commercial self-support was 100%. It is worth noting that in the absence of other bidders, Poly itself has continuously increased its price to the maximum limit of 3 billion yuan, and has continuously increased the proportion of its own commercial area, and finally conducted 30 rounds of bidding on its own. In the listing deadline of 13 days ahead of lock in advance of the plot, this is also the first time the Dongguan earthen market has been locked in advance of the situation.

On May 15, Pengrui Real Estate, also without other bidders, alone carried out 29 rounds of fare increases and reported the proportion of commercial self-held area, and finally competed for the Nancheng Yayuan commercial and residential land at the price of 2.36 billion yuan + 100% of the commercial self-owned ratio. The premium rate was 159%, which locked the plot 2 days ahead of the listing deadline.

On May 16, Rongchuang won the commercial and residential land in Shatian Town at the cost of 1.023 billion + 40 years of commercial part. The premium rate was 50%. The whole online bidding process took only 29 seconds, 17 days ahead of the deadline for listing.

On May 22, the first property won Wangniudun commercial and residential land at the cost of 946.5 million + 40 years of commercial partial self-support, with a premium rate of 24%. The whole online bidding process took only 24 seconds, 16 days ahead of the listing deadline.

In April this year, the Dongguan land market began to heat up.

On April 17, China Shipping won the first piece of commercial and residential land in Dongguan at the beginning of the year with 1.438 billion. At that time, 27 housing companies took part in 62 rounds of sha, and the number of bidding enterprises reached the highest level in the Guangdong-Hong Kong-Macau Greater Bay Area local auction market so far this year.

With the release of Guangdong-Hong Kong-Macau Greater Bay Area's development plan this year, many brand housing enterprises have rushed into this bay area town, land transactions are also hot.

The regulation and control of adding more codes to cool down the prefectures and cities.

It is worth noting that in March 2017, Dongguan issued policies to regulate and control the real estate market, such as purchase restrictions, loan restrictions, and price restrictions, which also included innovative land supply conditions. To explore the new real estate land transaction methods, such as "limited land price, competitive construction of talent housing (indemnificatory housing)", "limited house price, competitive land price" and so on, so as to promote the rational and stable land market and strictly control the excessive rise of land price.

Now, the rapid warming of the land market has once again triggered an increase in regulation.

Yan Yuejin, director of research at Yi Ju think tank, said in an interview that the new policy of local auction in Dongguan cracked the "high bidder get" model, innovatively adopted the "final quotation" model, and determined the bidder through the model closest to the average price of the final offer. It has a positive effect on the whole land market price, because the highest quotation does not necessarily get the land, which makes it more rational for enterprises to get the land. Some of the land acquisition budgets are not many, but the offer is the closest and also has the opportunity to get the land. It can also better reflect the fairness of land acquisition.

Li Yujia, a researcher at the Guangdong Provincial Housing Policy Research Center, also believes that a one-off final offer, based on the nearest average price, can first eliminate developers with high risk tendencies and high leverage. Secondly, because the winning bidder has no influence on the final price, all bidders will show their true evaluation of the land based on the market fundamentals, and the final housing supply is also the best.

Prior to this, Suzhou, Hefei and other cities with overheated land markets have tightened real estate regulation and control policies one after another, including adjusting the bidding rules for land sales. After the Ministry of Housing and Construction issued two early warning tips for cities with large fluctuations in house prices and land prices, the CIRC also requested that the chaos of real estate financing, including banks and trust funds, be used to seize land in violation of regulations. Recently, housing financing has also been tightened, some housing enterprises will be asked if they have taken the "land king" and other issues when they apply for bonds.

Li Yujia believes that the Suzhou Land auction New deal on May 11 has proposed that after the land bidding exceeds the market guidance price by 10%-25%, it will be changed to a quotation and transfer method. Dongguan, which is also a "new first-tier" city, has also put forward a similar model, which can be regarded as the landing result of the long-term mechanism of the property market. As a result, it can be expected that the "prefectural and municipal fever" caused by second-tier hot cities (including "new first-tier" cities) may be brought under control.