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Real estate auctions in China - very interesting new laws

By
Services for Real Estate Pros with AuctionFirst

Just read this article about changes being made in legislation regarding public bidding at residential real estate auctions in China.  Apparently land for residential development is so hot - that public auctions where there is a frenzy of bidding activity live has spurred prices to go crazy high.  New legislation will instead require that bidders show up to the auction, register and then write their price on paper, seal their bid, and submit it there and then. All sealed bids will be opened on the spot and sell to the highest bidder as long as the reserve has been reached.  The reason for the new law is to hopefully slow down the escalations in prices that often accompany a public bidding war. Imagine that... they want to keep prices down.  Here's a link to the article:

http://lawfuel.com/show-release.asp?ID=16247

Frank Verna
Frank Realty - Jupiter, FL
Broker / Owner

Very interesting stuff LInda. Do you suppose they maybe got a heads up by watching our real estate markets?

Nov 25, 2007 10:29 PM
Linda Mardi
AuctionFirst - Austin, TX

I doubt it. China has very different market situation, economy, social and political factors.  I just got back from a trip to Ireland - where auctions are the du jeur method of selling in a hot/seller's market, but not in a buyer market.  Very distinct from US market where auctions are NOT used in sellers market, but only in distressful times.  Some of this has changed, but it's been slow/go to bring the auction method to bear during seller market - which is the best time to take advantage of the auction tool = more money.

Regards,
Linda

Nov 25, 2007 10:35 PM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
How cool is this. Well this is one economy that is transitioning and growing. Given the population I guess this all makes sense as demand must be very high. Thanks for the interesting post and article about it
Nov 25, 2007 11:24 PM
Al Maxwell
Keller Williams - Marietta, GA
Real Estate Agent
Very interesting. I wish we did closed bids over here. It would save so much time...
Nov 25, 2007 11:33 PM
Rich Kruse
Gryphon USA, Ltd. - Columbus, OH
I have a sealed bid auction coming up this month.  Live sales have not been going all that well.  Hopefully we can get action on some of my stuff this way.
Dec 01, 2007 04:20 AM
Jason Smith
DreamDirt Auction - Mondamin, IA
That is an interesting development.  I suppose they may have learned a lesson if they were watching us over here in the US
Dec 09, 2007 01:27 AM