(Enorth.com.cn)Binhai New Area is now probing into a real estate development mode centered on “land property”.

Pi Qiansheng, director of the Administrative Committee of Binhai New Area, said at “Summit Forum on North China Economy and Urban Development” on the 12th that Binhai has great real estate development room compared with Pudong. He then proposed four real estate development modes including tender, auction and publicly listed offering for first-class land development, reclamation, inter-enterprise land integration and land replacement.

House property and land property shall be treated differentlyBesides Tianjin local real estate companies including TEDA, such real estate magnates as Beijing Capital Development Holding (Group) Co., Ltd., Beijing Urban Construction Group, Vantone and Financial Street Holding also attended the forum. Pi said that “house property” and “land property” will be separated treated in the real estate development of Binhai New Area. The house property market will not be interfered with, but the land property market will be cultivated.

Pi proposed tender, auction and publicly listed offering for first-class land development, reclamation, inter-enterprise land integration and land replacement for land property development.

Four land property cooperative modesOf the four cooperative modes, the most conspicuous ones are tender, auction and publicly listed offering and reclamation. At the same time, the real estate development idea with “land development” dominating has propped up.

It’s said that for the profit level for first-class land development is comparatively low and the commonweal of development, first-class land development is normally conducted by enterprises designated by the government, not tender, auction and publicly listed offering. The idea of “tender, auction and publicly listed offering” for first-class land development will bring forth more profit to enterprises.

Pi said: “under this mode, enterprises and government collaborate in first-class land development and agricultural land, saline-alkaline land, shallow sea and sea-beaches will be tendered in the first-class market, therefore, the profit and development room is big.”

He also added that the present modus operandi is rather conservative as the biggest equity for private enterprise is only 49%.