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The tendering process began on Monday for the last of the premium land in the heart of Beijing's Central Business District. More than 60 developers prepared over 200 development plans, to get a piece of the prime location.
12 lots of land are up for offer in this round of tenders. The smallest measures 7,500 square meters, while the largest is more than 16 thousand square meters. Potential bidders flooded the registry office on Monday.
Interested parties include property developers, and companies wanting to build headquarters in the CBD. The final development blueprints will be in accordance with the government's planning layout.
One bidder said "Our layout includes green plants, corridors, and underground space. We are a real estate developer."
The developer says his company has a blueprint for the land, and their development will be in line with CBD's positioning as a hub of financial and corporate services.
The tender process is divided into two phases. The current first phase is what's known as the technical auction. The tender proposal includes the overall and construction layouts, and will account for 20 percent of the total grade. The rest of the tender process will consider land prices and possible incentive benefits.
The tender guidelines didn't set any thresholds for company size, registration capital or annual profit. So many companies are seizing this opportunity to enter the CBD.
Cai Hongyan, Official of China Real Estate Association said "Land prices will no longer push up housing prices. It's left more of a profit margin for enterprises, as well as room for appreciation."
The way in which land is sold in Beijing is also changing. From private sales to public auctions, price is not the only factor being considered by vendors.