Parliamentarian urges land auction reform to control housing prices

A member of China’s parliament has called for the reform of land auction rules to curb burgeoning housing prices across the country, the China Securities Journal reported. Yuan Chao told the ongoing annual parliamentary sessions that land sale tenders should require the bidder to submit detailed development plans and the government should assess the submissions with a focus on the proposed asking price for properties. “Developers nationwide can afford a 50% price markdown,” Yuan said. “Extremely fat profit margins and corruption push up prices 20% directly and a further 30% indirectly, which is passed on to homebuyers.” He also urged land use, construction, tax and finance authorities to work together to crack down on unreasonably high prices.