[photopress:property_NieMeisheng.jpg,full,alignright] Shanghai has launched a unified land trading market with a mission to help stem corruption in related transactions across the city.
The Shanghai Municipal Land Trading Market has been inaugurated with 3,000 square meters of space in the Lujiazui area of Pudong New District.
Its main concerns are transfers and leases of land use rights for commercial developments or industrial purpose, division and transfer of the use rights of large patches of land for development, housing construction and the transfer of land accompanying it.
The market is connected to land trading departments in the city’s 19 urban districts and suburban counties. In these departments potential buyers can obtain full and objective information about all land resources that are put up for trading at the market.
The land ‘shopping mall’ or market means all land transactions will now occur in an open and unified platform. Experts believe the measure can further regulate Shanghai’s real estate market.
Data from the National Bureau of Statistics shows 70 cities saw their land price increase over 12% on average in the first three quarters of last year. In China’s commercial capital Shanghai, the city’s downtown Huangpu district was selling for RMB67,000 per square meter last August.
Nie Meisheng, Chairman of China Real Estate Chamber of Commerce and shown here, said ‘The main reason for the price surge was the closed transaction system. There were irregular activities in every process of the system, so prices went up step by step during the transaction process. If the land prices cool down, property prices will also be under control.’
Experts also say the openness of land transactions can help stabilize land and housing price in the long term. It can also curb land hoarding.
Nie Meisheng said ‘Property developers have to offer enough money to buy the land. Should the bids be public and transparent, developers are not able to stock up much land.’
Although last quarter experienced a slow down in the property sector, China’s real estate market overall has been witnessing a boom over the past few years. Land and housing prices have soared amid robust demand from both speculative investors and end-users. It is though that Shanghai’s new land market will help ensure that any growth in the city’s real estate sector, will be steady and well regulated, in going forward.