[photopress:real_estate_auction.jpg,full,alignright]The Beijing Morning Post reports on a change in some places’ bidding practices.
Developers now enter silent sealed bids, as is done in many other countries around the world.
Yang Hongxu, an analyst from E-house China R&D Institute said, ‘This method may stimulate developers to offer a higher price because they have only one bidding chance in most cases.’ That is a big presumption to make. The illustration shows the old method where frequently the excitement would get some bidders carried away and pay more than they intended.
The inadequate land supply and growing bidding prices are blamed for boosting the cost of housing in the city.
The Shanghai Housing and Land Resources Administration Bureau has accelerated its pace in offering land to alleviate the problem. It offered five parcels of land for public transfer by July, equivalent to the number for the whole of 2006. But fewer parcels are being offered for residential property.
According to Shanghai Youwin Real Estate Information Service, new houses were sold at an average of RMB11,577 (US$1,543) per square meter in October, an increase of 10.18% from a month ago.
Source: Shanghai Daily