Shanghai plans to lower the threshold of land auction after increasing land supply

The Shanghai Municipal Bureau of planning and natural resources recently convened an online meeting of the heads of real estate enterprises in Shanghai in batches. Under the epidemic, real estate enterprises are generally concerned about whether Shanghai has relevant preferential policies in terms of local auction. A number of participating real estate enterprises received responses. Starting from the second batch of centralized land supply in 2022, it is proposed to reduce the proportion of local auction regulatory funds from 110% of the starting price to 90%. Since the registration of the first batch of land supply has been completed, it is still implemented in accordance with the original standards. Previously, when participating in Shanghai land auction, real estate enterprises need to pay bidding deposit and land supervision fund respectively. The bidding deposit is generally paid at 20% of the starting price, and the land supervision fund is the upper limit of 100% + 10% premium of the starting price. That is, before bidding, real estate enterprises need to pay a total of 130% of the starting price. If the land is successfully acquired, the land supervision fund will be converted into the land price, otherwise it will be returned within 1-7 days.