Beijing Lawyers report real estate price crazy rise controversy over property profiteering

Source: Internet
Author: User
Keywords Profiteering controversy real estate
Developers arbitrary price increases are accused of illegal profit-making land costs did not increase, the cost of steel cement has not increased, housing prices in the short term rapid growth, it is difficult to understand that this is a normal and reasonable business behavior.  Developers are suspected of profiteering, once verified, should bear the corresponding responsibility. The regional monopoly of the real estate market makes the local government and the developer become the benefit community. The current housing prices by the monopoly of the developers to form a monopoly of high prices, even if the cost of developers to zero, they will still seek monopoly high prices, housing prices can not be lowered to-point of view concern Legal daily reporter Douxiao Legal Daily trainee reporter Ninchel North  Li Xiesen, a beijing-based lawyer, has been seen by many as a Don Quixote who struggles with prices higher than windmills. As "impressed", Li Xiesen and another lawyer jointly to the National Development and Reform Commission and the Beijing Development and Reform Commission to report a real estate in Chaoyang District, Beijing, the reason is that the real estate from November 2009 to April 2010, the average price from 14690 yuan per square metre soared to 36000 yuan per square metre.  "Suspected illegal profiteering behavior."  Li Xiesen told reporters that the above real estate in 2008 opened the price is more than 9,000 yuan per square meter.  In the absence of changes in the premise of the cost, from more than 9,000 yuan per square metre up to 36000 yuan per square metre, developers from the increase in profits to be an infinite reverie. Since last year's soaring housing prices, countless "housing slaves" in the passive and even humiliation to endure the rise in housing prices, has learned the numbness and silence, even the slightest even weak resistance will be exciting. As Zhang Yuanso, a Ph. D. in land management at Renmin University of China, said: "The real attraction is not the content of the report, but the reporting of the act itself." "A Don Quixote's battle with the windmill, in addition to attracting people's attention, does not seem to have a substantial impact on high house prices," he said.  But with the escalation of discussions surrounding real estate profiteering, a more transparent and public-interest property pricing mechanism may emerge.  Free prices into real estate industry in the past more than a year, along with the property market madness, free price increases become the normal developers to sell the house.  This April, located in Beijing, Chaoyang District, five-Li Bridge near a real estate in the night before the opening, an explosion of 4000 yuan per square metre, so many buyers think "out of the accident." The project was postponed because buyers were strongly opposed to the price hike.  In order to prevent unexpected conditions, the opening day, home buyers were quarantined outside the sales office, only the buyers were called to enter the signing site. According to a site, a home buyers, as the temporary property price per square metre increase of 4000 yuan, buyers and developers of the conflict, both sides of the dispute, resulting in intensified contradictions. Later, a home buyers dozen Mayor hotline, the municipal government sent Chaoyang district and the development and Reform Commission leaders to negotiate with developers. After communication, developers and 10 buyers representatives experienced 7 hours of negotiations, and finally reachedEach square meter price rises 2000 yuan the agreement, at the same time, the developer also agreed to restore the original some preferential policy. Every time the rise in house prices, for buyers, is tantamount to a strong earthquake.  But in the developer's view, free price increases are justified, do not increase the price will be wronged. "I read the lawyer's article, and I can't comment on what they say. However, I think if they want to use this to become famous, at least they chose the wrong target and chose the wrong direction. From the content of the article, that they understand the real estate industry is not in place, they stare at us this project might as well go to Hainan project, those items today, another price tomorrow, whether from the speed or scale are faster than our project. "In response to the report of developers profiteering, Li Xiesen complained about the owner of the property in the interview asked," We are all real estate projects in the highest price of the project? "The owner explained:" The price is builders, determined by the supply and demand relationship, you see we sell high prices, do not see we sell low prices. For a project, the average price should be reasonable. The actual price of our project is about 25000 yuan per square metre, the average value is not more than 20000 yuan per square metre. "I think from the fundamental point of view, in this case, said price increases, is nothing more than a high or low price increase." If so, it would be more appropriate to find the Tomson product directly. Tomson A product rise more outrageous, Guangzhou, Shenzhen More, Hainan is everywhere, which property does not price? Recently affected by the Beijing property market, now the sale of this project is not particularly good. In fact, after the new deal, every real estate enterprises are inevitably affected, are in the observation state. "The official said frankly," I think if this article will have an impact, it shows that the real estate industry is too fragile, the phenomenon of price increases is not a project phenomenon, but the whole real estate industry phenomenon. "The rise in house prices is alleged to be illegal profiteering Li Xiesen said in an interview with the legal daily," since the second half of 2008, they have been concerned about the project, by the end of 2009 years, the property has been sold to more than 18,000 yuan per square metre. "At that time, we and many owners felt that the price was acceptable. This April, the national two sessions have just opened, a variety of property control policies have been introduced, I think the property price should be curbed, but once again in the field visits, found that the property of a building has risen to 36000 yuan per square metre.  "Li Xiesen that the cost of land has not increased, the cost of steel cement is not a big increase in prices, but the rapid growth in the short term, it is difficult to understand that this is normal and reasonable business behavior." According to the seventh article of the People's Republic of China Price law, the operator should follow the principle of fairness, legality and good faith, and the basic basis of pricing is the production and operation cost and market supply and demand situation, Li Xiesen said. At the same time, the price law also stipulates that the production costs or restocking costs have not changed significantly, the operator to profiteering for the purpose, a largeTo raise the price, the government price authorities may impose administrative penalties. According to the Beijing Bureau of Land and Resources September 1, 2006 issued a notice, the real estate developers Beijing opened Tiancheng Realty Development Co., Ltd. was let Beijing Chaoyang District Dongba Township single store residential quarter two land use rights, Covers an area of 354233.15 square meters, planning construction area of 433021.07 square meters, land transaction price of 320.3952 million yuan. October 2008, the project was to be pre-sale at $9600 per square metre.  However, by the opening of April 17, 2010, the project e17#, e19# Residential buildings open price of 36000 yuan per square metre. "Developers of this property is suspected of profiteering, once verified, should bear the corresponding responsibility."  "Li Xiesen said. Recently, the Ministry of Land and Resources will investigate the cost of commercial housing in 35 key cities such as Beijing in the near future. So whatever it is, I want the price authorities to be able to respond, and if the other person fails to perform their duties, we do not rule out the way of administrative action.  "Li Xiesen said.  Regional Monopolies breed interest Community reporter found that the development of commercial housing costs, has been an indefinable topic. "Now, do you still think so?" In fact, the real estate company's gross profit margin is very low, only 25% to 26% or so. I have a relative is selling drinks, you know how many people's gross margin? 70% or so.  "In a public forum, a well-known developers were asked by reporters," some people say that the real estate industry is profiteering industry, at every turn, tens of millions of billions of income, and fought back.  The reporter learned that Wantong real Estate board chairman Pinglun has said that developers average return on assets less than 5% per cent, Hua Yuan group chairman Ren Zhiqiang also said that the average industry interest rate in the past few years only about 8%.  Although developers for real estate profits are kept low-key, but the real estate costs have aroused the concern of the community. In 2009, during the NPC, the National Council of China has submitted a conference called "Why the house price of our country is high", said a survey showed that the real estate project development, land costs accounted for the highest proportion of direct costs, reached 58.2%. The report pointed to the local government as the real estate industry 10 years of rapid development of the largest beneficiaries.  The Ministry of Land and Resources issued a report last June, said that through the survey of more than 600 real estate projects, the cost of land prices in the proportion of the average of 23.2%.  Some insiders believe that in the discussion of whether the developers to gain profits at the same time, in the government regulation of the property market background, to explore the cost of housing has a more far-reaching significance.  The reporter found that this year, the government has introduced a succession of policies to regulate house prices, was once seen as "precision strike unprecedented", but recently there has been a trend of subsequent weakness. "Some members of the public have expressed doubts and disappointments about the policy and enforcement of house-price regulation, as there is no public expectation of a serial gun-type regulation." Zhang Yuanso says the timid of regulatory policy mayShow something deeper.  Liu Junhai, a professor at Renmin University Law School, said in an interview with the legal daily that the regional monopoly in the real estate market has made local governments and developers a community of interests.  Liu Junhai said that the regional monopoly refers to, often a large regional plots by the local government to sell the same developer, thus forming a "monopolistic development." Liu Junhai further questioned that the real estate supply in the case of monopoly, prices not only depend on demand, but also the monopoly power of developers. A piece of regional development, so that developers in the real estate market in a monopolistic position, he has the ability to price.  The current housing prices by the monopoly of the developers to form a monopoly of high prices, even if the cost of developers to zero, they will still demand monopoly high prices, housing prices can not be down.  "Two times housing reform," the initiator of Li Ming told the "Legal Daily" reporter, the real estate industry there is no doubt, and the birth of three major interest groups, so that the regulation of house prices and housing security legislation process are struggling.  Li Ming's three major interest groups include: the short-term benefits of government land finance, the 2009 National land transfer income of 1.4239 trillion yuan, of which Hangzhou to record 120 billion yuan won the championship, the management department's departmental interests, to some extent, to maintain the interests of developers and speculators, a vested interest in the interests of developers. "The 2009 National Real Estate market data, published by the National Bureau of Statistics, showed a record high of nearly 940 million square meters of turnover, or an estimate of the average price of 4695 yuan per square metre. The annual housing price rose by 24%, an average of 813 yuan per square metre, also reached an unprecedented level. According to the Ministry of Land and Resources of urban land price monitoring information, 2009 the average cost of urban commodity housing is about 2500 yuan per square metre, can be calculated, 2009 China's real estate developers earn as much as more than 1 trillion yuan. The international real estate industry profit margin generally in 5%, and China's real estate industry interest rate in more than 30%, is a windfall industry.  "said Li Ming. The reporter learned from the experts there, in Germany, if the real estate developers to set the price of more than "reasonable price" 20% that is "super high price." Under the German Economic Crimes Act, the buyer could sue the court and the seller would face a fine of up to 50,000 euros if prices did not fall immediately to a reasonable level.  If the real estate developers to set more than "reasonable house price" 50%, it is considered as "house price profiteering", criminal law constitutes a crime, the seller will be higher fines, or even the highest can be sentenced to three years in prison. In view of this, Liu Junhai that, should further raise the public degree of real estate profiteering discussion, "Citizens have the right to report such profiteering pricing behavior to the price authority according to the price law, but whether this behavior constitutes the profiteering behavior stipulated in the price law, but also need the national development and Reform Commission to make the administrative ruling But I suggest that we can hold a hearing on whether the real estate business is making unreasonable profit margins,Widely solicit the opinions of consumers, real estate developers and experts and scholars. Legal Daily News Beijing June 1
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