Chinese authorities are exploring potential reforms for the country's property market as a small town in Zhejiang province tests a new approach to land auctions. The city of Lishui is auctioning off a plot of land directly to individuals, breaking away from the traditional practice of selling land exclusively to property developers. This experiment aims to boost government revenue and determine if it can be adopted by other cities. The existing land auction system, which has been a core component of urban development in China, has faced challenges as revenues decline and developers encounter financial difficulties. While the impact of this new approach may be limited to specific areas, it signals a willingness to explore alternative methods in managing China's property market. The government's plan to stabilize the real estate market, including providing reasonable financing for projects, aligns with these efforts to address the challenges faced by the industry and promote market principles [56644056] [ed0d553a].
The city of Lishui in Zhejiang province is auctioning off a plot of land directly to individuals, a breakthrough in China's land system. Municipal authorities in China have traditionally sold land exclusively to property developers, but this experiment allows individuals to participate in the auction. The current land auction system has been the core of urban development in China, but it has hit a wall as revenues from land auctions dry up and developers face financial difficulties. The experiment in Lishui will test whether allowing individuals to buy land directly can boost government revenue and potentially be adopted by other cities. However, it is unlikely to have sweeping effects across the country as the existing land auction system is still a central piece of China's urban management [ed0d553a].