Source: CCTV.com

03-03-2008 10:46

The land "shopping mall" or market in Shanghai 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.

Experts believe the measure can further regulate Shanghai's real estate market. 
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 increased over 12 percent 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 67,000 yuan per square meter last August.

Nie Meisheng, Chairman of China Real Estate Chamber of Commerce 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. And 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.

 

Editor:Xiong Qu