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