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What is the primary and secondary linkage in land development?
The first-level development enterprises have reached an agreement with the government to set a "limited repurchase" clause at a price lower than the cost when the land to be sold is listed for sale: after the project development is completed, the first-level development enterprises can give priority to repurchase a certain number of residential and commercial properties at a price lower than the cost to offset the first-level development cost of the land, thus increasing the cost of land acquisition and preventing competitors from entering.
Inflated first-level development cost:
After the first-level development of land is completed, the land after consolidation is generally evaluated by a special land evaluation agency, but this evaluation should also refer to the first-level development cost and profit provided by the developer. In addition to increasing profits, land prices have also risen accordingly, leading to people's lack of interest in land, so it is easy for first-class developers to withdraw from the market.
The first-class developer reached an agreement with the government that the land to be sold should be sold according to the planning conditions with poor market liquidity and profitability when it is sold publicly, so that other developers are reluctant to enter. After the first-class developer wins the plot, the relevant government departments can assist in adjusting the planning indicators, and the first-class developer pays the land price accordingly.
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