Last updated at: (Beijing Time) Friday, March 28, 2003
Real Estate Prices to Be Reduced in China's Silicon Valley via Government Intervention
Real estate prices in the Zhongguancun industrial base, China's Silicon Valley, will be reduced by 60 percent, to 4.5 million yuan per hectare, to optimize the local investment environment.
Real estate prices in the Zhongguancun industrial base, China's Silicon Valley, will be reduced by 60 percent, to 4.5 million yuan per hectare, to optimize the local investment environment.
The Haidian district government in the capital of Beijing held a press conference Thursday to announce 22 new measures aimed at enhancing the development environment in Zhongguancun. The reduction of real estate prices topped the agenda.
Yu Jun, the spokesperson of the Haidian district government said that, up until now, land development had been carried out by real estate developers rather than the government. This has given rise to disorder and inflated prices in the real estate market. Infact, some investors, discouraged by the high real estate prices, have already abandoned their investment projects in the zone.
Zhang Qiang, director of the local land and resources bureau, said that the government should establish a land reserve system through the recovery, re-purchase and replacement of land. The government should then sell the land through public auction to avoid corruption.
The Zhongguancun industrial base, located in the northwestern Beijing, is widely recognized as China's Silicon Valley as it is home to many software and computer technology companies.