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Wuhan Auctions Land-use Right

The use right of a piece of state-owned land was sold for the first time by auction earlier this week in this capital of central China's Hubei province.

The auction involves transfer of the use right of 8.3 hectares of state-owned land in Shiqiao village of Jiang'an District.

The piece of land for housing development was sold at the auction at the price of 68 million yuan (US$8.3 million), almost doubling the opening bid of 36 million yuan (US$4.4 million).

Seventeen real estate developers, including three from Hong Kong, participated in the 30 rounds of bidding.

Local officials said the move was designed by the local government to improve state-owned land resource administration, and provide a fairer, open and regulated market environment for real estate investors.

Previously the land-use right was usually transferred through administrative approval to developers at low prices.

The Wuhan Municipal Government plans to make land-use transfer by auction a bi-monthly event, and the auction of the use right of nearly 70 hectares of state-owned land will be put up this year.

(Xinhua 03/31/2001)

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