Real estate tidal text: First-hand building bidding should be restricted
It is a businessman’s nature to earn every copper plate. Recently, developers have used the tendering and selling of flats to be carried forward. From the previous application to luxury properties, they have expanded to small and medium-sized flats, trying to break the “six strokes". Even Liang Zhijian, the chairman of the Real Estate Construction Chamber of Commerce, has to open a note to show that the Real Estate Chamber of Commerce is “self-disciplined" and avoids further government supervision.
The tender was originally intended for developers to sell a small number of units to test the market response and help to follow the pricing of most units. Nowadays, developers have in turn sold most of their flats by tender. It is difficult for the public to grasp the “compact" prices of different flats after taking advantage of the concessions and rebates. The tender has reduced transparency and provided the opportunity to create the illusion that property prices are higher than the actual situation, resulting in a situation of information asymmetry. This is contrary to the legislative intent of improving the transparency and fairness of the sales arrangements and transactions of the first-hand residential property.
If the Government is naive to believe that the Developers Association is “self-disciplined" and will not be further supervised, it will only be “leaved by the nose" by developers. In the long run, the supply of private buildings will be further unbalanced and the property market will be easily lowered. While observing the “self-discipline" of the trade, the Government should also prepare for the regulation of the tendering of the first-hand flats. It is considered that only the large flats of Class D and E under the definition of the DSD can be considered (ie the saleable area of the flats is 100 square metres / about 1,076 square feet or The above) are sold by tender and further restricts the units sold by bidding to only account for no more than 10% of the total number of units. While maintaining the flexibility of the developers to sell their flats, they also defend the transparency and fairness of first-hand sales.