The deadline for acceptance of this pre-application is August 15, 2022. This batch of plots will be transferred to the third batch of commercial residential land for centralized supply according to the pre-application submitted by the enterprise. The announcement shows that the 8 plots are located in Yizhuang New Town, Shunyi New Town, Fangshan District, Daxing District, Changping District, Haidian District, Miyun District, Shijingshan Wulituo and other places. After the quotation of 5 of the 8 plots reaches the upper limit price, it will be transferred into the procedure of on-site bidding for the area of “existing housing sales”. 

Specifically, among the 8 plots announced this time, the initial price of Jing Tu Chu Yu (Hai) [2022] 033 plot, which is located in Xibeiwang Town of Haidian District, is the highest. The initial price of the plot is CNY 5.09 billion Yuan, and the land area is 52,463.4 m2. According to the transfer announcement of the plot, the reasonable upper limit price of the land is set to be CNY 585.35 million Yuan. When the bidding quotation reaches the reasonable upper limit price of the land, the higher quotation will not be accepted, and it will be transferred into the procedure of on-site bidding for the area of “existing housing sales”. The initial bidding area of “existing house sales” is 1,000 m2. At the same time, the transfer of plots is set to have an upper limit of 20,000 m2 of the area of “existing house sales”. When the area of the on-site bidding of “existing house sale” reaches the set upper limit area, a bid winner is determined by on-site number wagging mode. Bidders participating in on-site bidding shall submit the “Letter of Commitment for High-Standard Residential Construction”.        

Located in Changping District, the land area of Jing Tu Chu Yu (Chang) [2022] 040 plot is 32,830.724 m2, and the initial transaction price is CNY 3.17 billion Yuan. According to the transfer requirements of the plot, the reasonable upper limit price of the land is set to be CNY 364.55 million Yuan. When the bidding quotation reaches the reasonable upper limit price of the land, the higher quotation will not be accepted, and it will be transferred into the procedure of on-site bidding for the area of “existing housing sales”. The initial bidding area of “existing house sales” area is 1,000 m2. At the same time, the transfer of plots is set to have an upper limit of 44,000 m2 of the area of “existing house sales”. When the area of the on-site bidding of “existing house sale” reaches the set upper limit area, a bid winner is determined by on-site number wagging mode.

Located in Daxing District, the land area of Jing Tu Chu Yu (Xing) [2022] 035 plot is 27,876.518 m², and the initial transaction price is CNY 2.5 billion Yuan. According to the transfer requirements of the plot, the reasonable upper limit price of the land is set to be CNY 287.5 million Yuan. When the bidding quotation reaches the reasonable upper limit price of the land, the higher quotation will not be accepted, and it will be transferred into the procedure of on-site bidding for the area of “existing housing sales”. The initial bidding area of “existing house sales” area is 1,000 m². At the same time, the transfer of plots is set to have an upper limit of 35,000 m² of the area of “existing house sales”. When the area of the on-site bidding of “existing house sale” reaches the set upper limit area, a bid winner is determined by on-site number wagging mode.

        Located in Shunyi District, the land area of Jing Tu Chu Yu (Shun) [2022] 037 plot is 69,193.56 m², and the initial transaction price is CNY 2.43 billion Yuan. According to the transfer requirements of the plot, the reasonable upper limit price of the land is set to be CNY 279.45 million Yuan. When the bidding quotation reaches the reasonable upper limit price of the land, the higher quotation will not be accepted, and it will be transferred into the procedure of on-site bidding for the area of “existing housing sales”. The initial bidding area of “existing house sales” area is 1,000 m². At the same time, the transfer of plots is set to have an upper limit of 56,000 m² of the area of “existing house sales”. When the area of the on-site bidding of “existing house sale” reaches the set upper limit area, a bid winner is determined by on-site number wagging mode. 

      Located in Fangshan District, the land area of Jing Tu Chu Yu (Fang) [2022] 038 Plot is 48,701.2 m², and the initial transaction price is CNY 1.67 billion Yuan. According to the transfer requirements of the plot, the reasonable upper limit price of the land is set to be CNY 192.05 million Yuan. When the bidding quotation reaches the reasonable upper limit price of the land, the higher quotation will not be accepted, and it will be transferred into the procedure of on-site bidding for the area of “existing housing sales”. The initial bidding area of “existing house sales” area is 1,000 m². At the same time, the transfer of plots is set to have an upper limit of 33,000 m² of the area of “existing house sales”. When the area of the on-site bidding of “existing house sale” reaches the set upper limit area, a bid winner is determined by on-site number wagging mode.

Beijing’s first pilot auction for the sales area of existing houses during the second round of centralized land auction in 2021, namely the plot of Haihuxin Village of Daxing Huangcun Village. According to Beijing Daily, the plot attracted three enterprises to bid. After 17 rounds of price auction, the reasonable upper limit price of the land reached CNY 3.784 billion Yuan. After 23 rounds of bidding for “existing house sales area”, the land was sold. The sales area of the existing house was 54,000 m². In the end, nearly half of the commercial housings in the project will be sold. 

In 2021, the third round of centralized land auction in Beijing strengthened the regulations on “existing house sales”. Plot 0408-646 of Jinsong Street, Chaoyang District with the best geographical location requires all the existing house sales, and another 5 landsbid for the sales area of existing houses on the basis of the bidding land price. 

Among the first batch of centralized land supply in Beijing this year, 9 of the 18 plots involved in the procedure of bidding for the existing house sales area; 12 of the 17 plots in the second batch of centralized land supply this year were involved in the “bidding for existing house sales”. 

Seen from the last land auction, there are 12 lands involved in “bidding for existing house sales”, among which 2 were passed, 4 were closed at the base price, 3 do not reach the upper limit of land price, and 3 reached the upper limit price and were transferred into the area for bidding for “existing housing sales” after reaching the upper limit price. 

In addition, it can be seen from the announcement of pre-application that Beijing Municipal Commission of Planning and Natural Resources requires Beijing to further optimize the mechanism of pre-application, take measures to ease the capital pressure of enterprises, stimulate market vitality and stabilize the real estate market. 

First, after the official announcement of the conversion of the lands, if the subject who has obtained the pre-application qualification of the lands forms a consortium with other enterprises to participate in the bidding for lands, it shall be deemed that the consortium has participated in the pre-application. After winning the land, it shall enjoy the same rights as other pre-applicants. 

Second, for the enterprises that have obtained the pre-application qualification of the lands and finally won the lands, the proportion of down payment shall be further reduced. The down payment shall be reduced to 50% of the land transaction price by the sum of all the government’s land transfer income plus 50% of land development and construction compensation fee, which is reduced by 10%~20% compared with the previous one. The remaining land transaction price shall be paid within 4 months from the date of signing the agreement and contract.

Third, the business environment is further optimized. In the pre-announcement stage, the preliminary plan and arrangement of municipal traffic construction around the project and relevant municipal materials have been announced to facilitate the enterprises to make investment decisions, enhance the confidence of investors and stabilize the market expectation.