What does "bidding, auctioning and hanging" mean in real estate development?

The system of bidding, auction and hanging originated in Europe and America and is widely used in Hong Kong. At present, the bidding, auction and hanging forms of operating land in China's real estate industry are all formulated with reference to Hong Kong's land auction rules. As the most important thing in managing urban land and standardizing the order of land market, bidding and auction of operating land use right can theoretically prevent corruption in the field of land leasing, and is also a fundamental measure to improve the level of urban land management and improve the investment environment. It has obvious advantages over agreement transfer, which can make land transfer at a fairer and more reasonable price, reduce human interference factors and put an end to corruption.

A set of scientific, reasonable and perfect land auction and auction system can end the "black-box operation" of land supply by agreement under a certain system and enter a new era of open land supply transactions. Because of this, some people call the promulgation and implementation of the land bidding, auction and listing transfer system "land revolution" in China. The advantages of this system are:

Advantages:

First, the land use right is listed by bidding, auction and listing to prevent and avoid corruption. Land use is not open, and it is inevitable to be mixed with "behind-the-scenes transactions". For the benefit of individuals or small groups, some land use rights authorities often take the opportunity to collect wealth, enrich individuals, harm the country, and directly lead to the loss of state-owned assets.

Two, the implementation of bidding auction listing transferring land use rights, is conducive to the healthy development of the real estate market. The implementation of public bidding, auction and listing of land has reduced many intermediate links and greatly reduced the space for buying and selling land.

Thirdly, bidding, auction and listing of land use rights are conducive to the transfer of land use rights, the separation of real estate and the improvement of land development efficiency. At present, the land supply mode of "bidding, auctioning and hanging" is conducive to the rational use and overall planning of land. Due to the implementation of the land reserve system, the government will gradually convert the original land into cultivated land before bidding, auction and hanging, the demolition problem will be properly solved, the land development work will be basically completed, the surrounding municipal construction will be gradually improved, and municipal services such as water, electricity and coal will be arranged in a planned way. As long as the developers make the design drawings according to the planning requirements and get permission, they can start work smoothly, concentrate on improving the quality and service of the real estate, greatly shorten the real estate development cycle and effectively. Therefore, the efficient use of land in real estate development is inevitable.

4. Bidding, auction and listing of land use rights are conducive to fair competition in the land market. Because land can be auctioned publicly, all real estate developers can obtain land use rights through bidding. No matter domestic or foreign-funded enterprises, everyone stands on the same starting line through bidding, which further embodies the market rule of survival of the fittest.

Five, the implementation of land use rights bidding, auction and listing is conducive to the improvement of the comprehensive strength of developers. Open "bidding, auctioning and hanging" means equal opportunities for real estate developers. As long as they have enough economic strength and economic strength, they can win in the competition. Small and medium-sized developers must adapt to the new planning, study the bidding requirements in depth, and do what they can according to their actual conditions, so as to occupy a place in the market and enhance their development capabilities. Developers with strong comprehensive strength will get greater opportunities and develop step by step. Developers who have no strength will gradually fade out of the market after losing in the competition again and again, leading to a reshuffle of the real estate market.

Six, the implementation of bidding, auction and listing of land use rights can more reasonably reflect the land use value. The government must make a correct evaluation of the land, adopt a reasonable bidding method, fairly evaluate the successful bidder, develop excellent buildings that meet the market requirements, and better reflect the land use value.

The above advantages of the bidding, auction and hanging system are based on the premise that the system itself is highly perfect, with strict and reasonable operating procedures and implementation rules, and a good political, legal environment and humanistic foundation. On the other hand, under the condition that government functions, social morality, legal system and supervision system, social political system and market economy system are not matched, promoting the reform of market system and property right system alone will not only fundamentally solve the efficiency problem of traditional system or system, but also bring new and more serious social equity problems.

Disadvantages:

When shady transactions under the sunshine are exposed again and again all over the country, people are more worried about whether the system of bidding, auction and listing can be realized. As a result, all walks of life began to think deeply about the theory that the implementation of bidding, auction and hanging system can reflect the fairness of procedures and results when the basic systems such as government monopoly market mechanism, social integrity and moral standards, legal environment and supervision system in China's current land market are not compatible with the complete market economy system, and published endless rebuttal articles.

On August 26th, 2003, China Business News pointed out with the title "Shanghai Real Estate Developers Touch the Sensitive Nerve of the Land Transaction System": Many real estate giants believe that the rise in land prices is due to "open competition", thus pushing real estate prices to the brink. High housing prices are actually high; There is a bubble in house prices and a bubble in land prices. Shanghai real estate industry is going to jointly write to relevant departments to put forward opinions on the current land bidding, auction and hanging system. China construction news pointed out in the new land policy that Beijing's state-owned real estate companies and some listed companies, like Shanghai, are opposed to the bidding, auction and hanging system of state-owned land use rights promulgated by the Ministry of Land and Resources. On June 25th, 2002, China Economic Times pointed out that the system of bidding, auction and hanging may trigger an economic bubble and needs to be standardized. On June 25th, 2004, China Economic Times pointed out that land speculation is very common. According to the regulations, real estate developers can apply for land with corresponding qualifications, but the actual operation is another matter. On June 7th and 8th, 2004165438+1October 8th, the Economic Information Daily used Chen's The First Hammer of China Auction to talk about the game in which the hammer of land auction fell to the west and the "hidden rules" of auction industry harmed others' interests, and the People's Daily published on May 29th, 2004

As a special industry, the introduction of any system in the real estate industry will cause widespread concern in society. Objectively, everything has two sides, especially a new policy, and there will be shortcomings in the running-in with the market. As a groping China, it is understandable.

First, the evaluation criteria are too simple. In the United States, the price factor is the last one, but now we only use the price to bid and auction, absorbing the worst things from others. In this way, when we see the expected changes, not only the skyrocketing real estate prices, but also the direct victims. It will not be the government, nor the developer, but the ultimate consumer.

Second, the bid evaluation process and standards are vague, which makes the bidding process quiet. At present, due to the lack of strict bid evaluation procedures and standards, the bidding work in some places is very irregular and is interfered by too many human factors. A few days ago, the author actually saw on the Internet that the price of a piece of state-owned land in a certain place in Henan was lower than the intended price at the time of the agreement. Of course, I am not saying that the auction price must be higher than the intended price to explain the fairness of the system. The key point is that the winning bidder is the enterprise that promised to transfer by agreement at the beginning, and its inside story is naturally clear only to the local government.

Third, in order to make the land supply process more open, just and fair, the government needs to further improve and optimize the land bidding procedures, stipulate strict bid evaluation procedures and standards, and prevent human factors from interfering; After bidding, auction and listing, the government still operates behind the scenes, and the problem of unfair real estate transactions in the market has not been solved. First of all, due to the trap of the dual-track system of land supply, the powerful class still uses their rights to obtain the allocated and agreed land at a low price in the market, and then resell it, thus obtaining huge land profits. Secondly, bidding, auction and listing can still be operated in a black box, which leads the government to use the sunshine system to "guide" unfair transactions into fair transactions.

Fourth, the policy transparency of the market is not enough. In China and Hongkong, the government's land supply plan is published twice every six months, sometimes all the plans are published at once. After the return of Hong Kong, in order to increase the supply of land for sale and balance property prices, a land sale plan for several years was announced at one time. On the one hand, it can ensure that more people understand the land supply situation, on the other hand, it can help developers to arrange funds reasonably when choosing land. When law-abiding developers are in urgent need of land, "monopoly corrupters" just don't supply land; When unscrupulous businessmen who collude with "monopoly corrupt people" need land, they give them whatever they want. Once this kind of corruption happens, it will not only involve the loss of state-owned land assets, but even directly hurt the interests of law-abiding developers and ordinary property buyers, at the cost of people's doubts about the so-called fair and just system and the deep crisis of government credit.

Fifth, information publicity is not enough. Because of the lack of transparency and openness in land planning. In Hong Kong, buying land will be widely concerned by Hong Kong people. Before the auction, the agent will predict the results of land purchase through the media, such as land transaction price, construction cost, interest, etc., and then use the transaction price of similar properties around as a reference to predict a variety of transaction prices according to market trends, thus creating a lot of public opinion before the auction. The transaction price around the auction site in the mainland is not accurate and can only be judged from the price of the project. For example, the land price is 3,000 yuan/square meter, and the total cost after completion is more than 6,000 yuan/square meter. However, the price of surrounding projects is only about 5,000 yuan/square meter, and the market price transparency is not high.

Six, the bank's financial support is insufficient. To buy land in Hong Kong, it is generally required that the investment place pay off all the land price within one month, and the developer has arranged the land use right and construction loan before investing in the land. In Chinese mainland, due to the poor risk prevention ability of financial institutions, it is almost impossible for developers to obtain financial support from financial institutions before obtaining the land use right, so their funds are basically self-raised, and it is not surprising to pay the transfer fee by stages in Chinese mainland.

Seven, intermediary services can't keep up. Hong Kong's land auction documents are for architects, because they are professionals and can make professional analysis, such as evaluating land purchase restriction and environment. However, they will recommend some plans and budgets to developers. It can greatly improve the ability of small and medium-sized enterprise developers to participate in competition. However, the degree of marketization of mainland design institutes is not high, and there is no concern about this aspect at all.

Eight, the government competition system lacks standardization. Under the condition of market economy, the policy of giving priority to economic development lacks the institutional support to regulate the orderly competition among governments, which intensifies the disorderly competition among local governments, and at the same time leads to the conflict between the local protectionist investment policy and the bidding, auction and hanging system, resulting in the endogenous motivation for local governments to need low land price, zero land price and negative land price. Under the condition of asymmetric information and pure economic indicators, due to the lack of scientific development concept matching to standardize the development ideas of local governments, local short-term performance preferential policies also exclude the bidding, auction and hanging system, which leads to the formation of fraud mechanism for local governments, thus affecting their limited rationality and rational deviation, and finally leading land users to deviate from the principle of equal exchange in government-monopolized land transactions.

It can be seen that, compared with the corruption when the agreement is sold, if there is no effective risk prevention mechanism, the bidding, auction and hanging system may be used by the government to monopolize the market, and the consequences will be either blindly raising the price for the government's financial needs or lowering the price for the government's black-box operation of attracting investment, thus alienating it as an opportunistic shield for the government to improve "efficiency" or safeguard "justice". The "monopolist" is naturally more corrupt and more harmful.

Perfect:

In order to make the bidding, auction and transfer of land more suitable for the needs of social development, we must further improve and perfect some restrictive factors that are not suitable for economic development and ensure the health and stability of the real estate market.

First, clear the specific methods and procedures of bidding and auction of real estate projects, and formulate housing.

Easy land use types, practices and compliance with rules and regulations standardize and institutionalize all processes, reducing people's subjective differences and discretion. In order to make the land supply process more open, fair and just, the government needs to further improve and optimize the land bidding process, formulate strict bid evaluation procedures and standards, and prevent the interference of human factors; We can imagine that the most ideal land transfer system is like a "land transfer machine". The government will input the application conditions and credit information of all land use right applicants into the system, and the system will select the most suitable bidder for land transfer. Different results will not be obtained because of different operators and different social environments, so that the land transfer mode can truly embark on a standardized development track.

Second, abandon the idea of quick success and instant benefit, take the qualification, work experience, real estate performance, market reputation, credit, development plan and land use of investors as important indicators, and increase their weight, instead of taking price as the only or important criterion for land acquisition.

III. Encourage foreign-funded enterprises and local enterprises with abundant funds but no local development experience to joint bid. From the perspective of developing local economy and protecting the safety of foreign capital operation, combining foreign capital with local development experience can achieve a win-win situation for all parties.

Fourthly, it is more efficient to improve the social openness of real estate development and encourage developers with strong strength and good performance to engage in real estate development under the management of the government.

Fifth, vigorously improve the transparency and fairness of the land market, and strictly distinguish the macro-management functions and market operations of governments at all levels.

In order to curb land speculation and hoarding, the management of the secondary land market should be strengthened. After land transfer, whether land users really fulfill the transfer contract and develop according to the planning and progress expected by government departments, or deliberately hoard land, raise land prices and engage in another form of speculation, so that law-abiding developers can either buy land at a high price or develop it without land, thus disrupting the normal land market order.

Seven, let professional institutions make a reasonable evaluation of the land, the developers who participate in the bidding bid to the government in writing, and the nearest enterprises will get the right to land development.

8. Adhere to marketization and planned land supply. Formulating a scientific and reasonable land supply policy based on the market and using the market mechanism to openly allocate land resources are conducive to improving the efficiency of land development and utilization, promoting the scientific management and utilization of land resources and promoting the sustainable development of the real estate industry.

Nine, in the way of land supply, it is necessary to effectively improve the market-oriented system of government land supply according to law, so as to form a market allocation mechanism that determines users through the market and forms land prices through the market, so as to maximize the value of land assets and promote the more healthy and standardized development of the land market.

Ten, we should improve the relevant laws and regulations of land reserve supply and demand as soon as possible. At present, the strength and scope of local government land reserve in China are generally limited. In the process of land acquisition, reserve and transfer, the government has huge working capital. If the operation is not standardized, it will easily lead to new corruption problems. Therefore, it is necessary to establish relevant laws and regulations to standardize operational behavior.

Eleven, the coordination and cooperation mechanism of relevant functional departments should be further improved. The implementation of the land "bidding, auction and hanging" mechanism is a comprehensive systematic project, which must be supported and cooperated by relevant government departments such as construction, planning, housing management, planning, price and finance in the whole process of promotion. As long as one department is backward and out of touch, the whole work will be put on hold and cannot be completed. If the planning conditions are not clear in time, or involve ancient and famous trees, the garden department does not cooperate, etc., even if the land is "recruited, auctioned and hung", it cannot be launched. Therefore, for the relevant government departments, if they do not change their ideas and still operate according to the previous administrative examination and approval methods, unnecessary contradictions may arise. Therefore, in order to cooperate with the current new planning, the government must establish relevant cooperation mechanisms in project planning, project establishment and qualification management, improve the operational norms of this business work from the system, and improve the efficiency of government service functions.

Finally, give full play to the functions of the discipline inspection and supervision organs, strengthen the monitoring of land management in accordance with the law, further strengthen the management of pre-information release, setting conditions, operating procedures in the process and contract performance afterwards, implement the whole process supervision, promote the standardization of the work of various departments, and make the bidding, auction and hanging system truly open, fair and just.