In recent days, the news of an auction of 144 state owned houses in xichang city has raised concerns. Red star journalists noted that the minimum unit cost of the property was $2955 per square metre and the maximum unit cost was $8156 per square metre, which would be auctioned in instalments from 29 november to 14 december。
The auctioneer's staff informed the press that the purchase of the above-mentioned property could be followed by a certificate of ownership of the goods, that interested bidders could look at the house first, and that the online bid would be sufficient after the deposit。
Property auctioned
Journalists have noted that, since the beginning of the year, a number of state entities have been disposing of state-owned properties. Housing agents in xichang city told journalists that the sale of state-owned property was of a smaller scale and had a lesser impact on the market price of xichang property. The chief research fellow of the centre for housing policy studies of the centre for urban and rural planning of guangdong province also stated that the sale of state-owned properties would increase the market supply, but would have a limited impact on the overall city pattern, and that there was no “sale sale on the platform”。
Xichang auction 144 housing units
On average, 3,000 to 5,000 yuan/m2
The announcement of the auction indicated that the sichuan sichuan sichuan sakura limited liability company, commissioned by the xichang city real estate services centre, would conduct a public online auction of 144 housing units (62 spaces) in accordance with the law for society, in accordance with the current situation
The target 1 is “35 housing asset packs for secondary schools in xichang municipality”, with a maximum of 107. 62 square metres and a minimum of 33. 10 square metres and an average start-up price of $3017/m2. The registration deadline is 5 p. M. This year, on 28 november, and the auction is from 10 a. M. On 29 november to 10 a. M. On 30 november。
The target 2 is “69 housing asset packs in the quieng sub-district of yuan zhuang, xichang city”, with a maximum of 123. 05 square metres and a minimum of 66. 55 square metres, at an average start-up price of $4997/m2. The registration deadline is 5 p. M. This year, and the auction will be from 10 a. M. On 6 december to 10 a. M. On 7 december。
Target 3 is “40 housing asset packs in east city, west chang city”, with a maximum of 172. 35 m2 and a minimum of 68. 88 m2 and an average start-up price of $579/m2. The deadline for registration is 5 p. M. This year, on 12 december, and for auctions from 10 a. M. On 13 december to 10 a. M. On 14 december 2025。
The interior of the property that was auctioned
The bulletin shows that the above-mentioned real estate ownership is clear and registered in the name of the relevant unit; the sale contract is concluded within five working days after the auction and the full price is paid by transfer within ten working days after the contract is concluded. A buyer who has the will to make a loan and has the confidence to do so may, after a bank audit, make 75 per cent of the bank mortgage and pay 25 per cent of the total price by transfer within five working days of the contract。
According to a query by red star journalists, the market price of the 144 properties auctioned by xichang was slightly lower than the price of the second-hand houses in the same district. The auctioneer's staff informed journalists that the above-mentioned sources, which had previously been affordable, secure houses, etc., had been converted into commodity houses and could now be purchased and issued with a certificate of ownership of the property. If there is a wish to compete, the house can be looked at below the line, with an additional $50,000 in each set of guarantees, which is available online at the time of the auction。
The sale of state property in many places
Experts say the impact on the whole city is limited
Not only xichang, there are many instances of public property houses being sold. According to a query by a red star journalist, on 14 november, the taicheng building development limited in guizhou registered a transfer of 11 properties in chongqing, jiangmen, anshun, etc.; on 5 november, the public resource exchange network of fukuzhou issued a public announcement to auction 51 marketized commodity houses in the governor's area on 21 november. Earlier, there had been cases of local state-owned property sales in beijing and shandong。
In an interview with the daily economic news, li yu jia, the chief researcher of the centre for housing policy studies of the centre for urban and rural planning of guangdong province, noted that since the beginning of the year, the country's high-cost housing sales have included, inter alia, the “screety strategy for optimizing assets” and the “bloom demand under financial pressure” policy-driven “activities”。
The minimum unit cost of the auctioned properties was $295/m2
“whether it is a functional state enterprise, such as a platform for urban investment, or a state-owned competitive enterprise, there are performance considerations, the pressure to preserve value added and the pressure to pay a profit tax. For listed state enterprises, responsibility is greater for shareholders and for valuations. Moreover, while in the past the value of real estate continued to rise and cash flows were secured by collateral, local taxes on state entrepreneurship have now become more stringent, requiring state enterprises to undertake some steady-growth tasks, but these tasks will hardly be profitable and cash-flowing in the short term, and therefore require the realization of assets.” lee wooja analyses。
Policy promotion is also an important reason for state-funded housing. The opinions on further revealing assets and expanding effective investment issued by the office of the state council in 2022 referred to “flexibility in a variety of ways to effectively inventory different types of assets”. There is a strong push for state-owned “triple capital” reforms, namely, the assetization of state resources, the securitization of state assets, and the leveraging of state-owned funds. The sale of property is a key initiative for the creation of inefficient assets and contributes to the financial empowerment of local governments。
Several property brokers in xichang told journalists that the sale of state-owned property was of a smaller scale and had a lesser impact on the market prices of xichang property. It was also analysed that the sale of state-owned properties, while increasing market availability, had a limited impact on the overall market pattern of the buildings and that there was no “a discount sale on the platform”. It is also submitted that when considering market supply, the relevant government departments are concerned not only with the number of new houses being sold, but also with the number of second-hand houses, the source of the house, the housing stock, the bank's direct sale, and the auction of the state treasury platform, among others, so that full-calibre statistics can truly reflect the balance of market supply。
Red star reporter, jianglong, photo coverage, part of the auctioneer
