|Land auction procedures have been changed in Dongguan, and it is no longer the highest bidder that gets the land. According to new regulations released by Dongguan City Public Resources Trading Network, bidding will now take place in two rounds. Once the first round is done and an upper limit has been reached, a second round will be held with an established baseline, above which all parties must bid again. Only this time, the one that is closest to the average bid – not the highest – will be the winner.|
If that sounds too much to grasp, you are not alone, dear reader. But city leaders seem to think this is the best way of preventing overheating in the property market. We will watch and see how it goes.
It is important to get the rules right because Dongguan is set to bring a large supply of land onto the market. According to the government, this year it plans to auction 14 commercial sites at 291,000 sqm and 51 residential sites at 2,716,400, double what it did in 2018.
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