URA: Resumption of land according to procedures Purchase price affected by the market

The URA recently launched an acquisition of an old building at a new high price and was accused of pushing up property prices. Wei Zhicheng, executive director of the URA, said that the bureau is acquiring assets in accordance with the law and established policies and procedures, facing the rising tide of the property market. It is largely passive and it is driven by the volatility of the property market.

Wei Zhicheng’s blog responded that the URA’s launch of the acquisition project must be implemented in accordance with the “Urban Renewal Strategy” promulgated by the government, and the purchase price was proposed according to the established calculation method. Taking the Chongqingli project as an example, the project involves about 80 residential property rights, which is slightly less than the rationale for pushing up property prices over the past one year.

Property prices rise Higher purchase prices

The property market has been on a cyclical upswing. Some of the projects have “low bought and sold high” in the early years, bringing a considerable accumulated surplus to the council. However, this kind of “temporary income” will only be used for the sustained development of urban renewal work. The increase in property prices will also make the acquisition. The price must be raised to offset the relevant income. To catch up with the degree of urban aging, the larger the scale of the project, the gap between income and acquisition costs will further widen.

Wei Zhicheng pointed out that the acquisition policies and procedures, as well as the market value of the project after reconstruction, are all driven by the property market trend. The property prices are now at a high level. Whether the URA or private developers are facing the “buy up” price, together with the construction fee, With regard to interest expenses and other expenses, the relevant development costs will be reflected in the future property prices. It is also an indisputable fact that long-term planning and reconstruction and building rehabilitation must be carried out in a coordinated manner.