The Planning and Natural Resources Commission of Beijing recently released a supplementary announcement on the first batch of commercial residential land transfer announcement of this year. For the first batch of 29 projects sold through listing this year, it announced the reasonable upper limit of land price and the upper limit of “public rental housing” for competitive construction, etc. Bidders are also required to make a commitment to the future price of the house and the minimum quality guarantee of the house.
It is understood that this is the first time that Beijing has announced a reasonable upper limit of land price, and through reasonable control of land price, the supply of commercial residential land will be promoted from the single goal of “the one who gets the highest price” to the multi-objective management transformation of improving the market, promoting land use and ensuring people’s livelihood.
In terms of setting the upper limit of the land price, the premium rate of the commercial residential land exceeded 90% and did not exceed 15%. The winner of the land was determined by further reducing the premium space and competing with other conditions.
Experts said the move reflects the principles of open, fair and just land market, improve the transparency of market information, facilitate enterprises to calculate, and then guide enterprises to rational bidding, is conducive to the realization of “stable land prices, stable housing prices and stable expectations.”
In addition, the supplementary announcement makes it clear that in the template of the “Letter of Commitment for Housing Price” that bidders must submit, in addition to promising the housing price, they also need to promise that the project will meet the minimum quality assurance requirements, including the two-star green building standard, the prefabricated building with an assembly rate of 60%, and the installation of solar photovoltaic or photothermal systems.
This will help guide the rational bidding of enterprises, while ensuring their own reasonable profits, leaving enough space for the future improvement of housing quality.