Real Estate Enterprises In Chengdu Land Auction Pricing Decisions, Strategic Thinking

In 2002 the No. 11 Order of Ministry of Land and Resources called off the agreement of ways of transferring land, which had been used for years, and asked for inviting public biddings, auctions, and public exchanges by putting up one's name plates to trade the lands for commercial use, such as tourism, entertainment and house building and so on. And then, in 2004 they issued No.71 Order, requesting the local governments to settle all the historic problems. After the cancellation of transferring agreements, public trading market becomes the main channel, and "bidding, auction, and putting up one's name plates"has become the main methods for the development of real estate. In accordance with the change of policies, the Chengdu government chooses auction as the main method to trade land. But because of lack of the realization of auction, and lack of experience, the level of decision on the price of the land of most enterprises are so low that it cannot adapt to the development of the market. Therefore, the need to strengthen our city's real estate enterprises'level on determining prices is very urgent and of realistic meanings. Based on this background, combining the specific conditions of Chengdu's land auction and with the process of land auction as plot, this paper studies the strategies of the decision on the price of the land sold by auction. This thesis is divided into two parts: the meaning and strategic consideration on the decision of price. The first chapter tells the great value of the decision of the price of land sold by auction. This part illustrates the significant meaning and internal demand of the decision of the price of the land sold by auction for real estate enterprises, and points out that only with the qualified ability in determining of the price of the land sold by auction, an enterprise can develop in the competitive market.