Land auctions held in the municipal governments in Beijing and Shanghai have generated little interest among property developers now looking to cut back on expenditure as a result of the global financial crisis, the South China Morning Post reported. Shanghai has withdrawn three sites from auction after they failed to attract any bids, while three out of 10 sites put up under the hammer in Beijing only received one bid each. The Suzhou municipal government didn’t set floor prices at a recent auction of 24 plots for fear there would be no interest. A spokesperson for Singapore-listed developer Yanlord said improving cash-flow positions was a priority for developers right now. The company bought two sites in Shanghai and Tianjin this year and says it has sufficient land in reserve for the next five years. The firm plans to spend its surplus capital this year on stock buybacks.
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