Guangzhou set to auction user rights for 2 plots

PUBLISHED : Wednesday, 15 April, 1998, 12:00am
UPDATED : Wednesday, 15 April, 1998, 12:00am

Guangzhou will auction user rights to two plots of land in June.

One site was expected to yield at least 200 million yuan (about HK$186.18 million), Xinhua said, quoting a China Daily report.

The newspaper said the two plots, each of about 53,000 square metres, were designated for development of open-market residential buildings and had been taken over by the Guangzhou Land Development Centre.

One parcel was south of Industrial Road in southern Guangzhou, the other west of Airport Road in northwestern Guangzhou.

Demolition of existing building and preparation of the sites had been completed.

The sale would give owners usage rights for 70 years.

Auctioneer Guangzhou Huasui Auction Co said the sale would be according to mainland auction law and standard international practice.

'Opening bids for the lands are still being evaluated,' the report quoted a local land official as saying.

The official said the northwestern parcel would be divided into four to six parts and be auctioned separately in a bid to get immediate payment.

Replacing free-land distribution, which was a feature of the nation's planned economy, Guangzhou started to sell land-use rights in 1979, in co-operation with Hong Kong real estate developers.

Cost of the land was counted as part of the investment.

Separately, Xinhua reported that Guangzhou was to simplify transaction formalities for deals on the secondary property market, effective today.

The move, which would reduce the time required for property transactions from 48 working days to 10, was designed to further boost property transactions in the secondary market, the report said.

Procedures for property appraisals and approval of transactions would be simplified, with requirements calling for all transactions to be completed within the specified time.

Last year, Guangzhou recorded primary property market sales of 4.23 million square metres, with total turnover at 27.9 billion yuan.

About 30,900 sq m of projected buildings and about 186,100 sq m of private housing were sold on the secondary market.

Experts attributed the sluggish secondary market to high transaction fees and taxes, excessive transaction completion periods, and the lack of bank backing.

However, the Guangzhou branch of the Agricultural Bank of China now offers secondary-market mortgages.