Shanghai Daily news

The Shanghai Housing and Land Administrative Bureau yesterday launched an information system tracking land deals in a bid to improve transparency in the sector.
The new system records and analyzes data in land trading, including prices and volume.
"A transparent trading system will help attract foreign investment into the local real estate market," said Shanghai Vice Mayor Yang Xiong yesterday.
Last year, China's Ministry of Land and Resources issued a circular to regulate the domestic land leasing market. According to the circular, all land is required to be leased out through open bidding.
However, some developers have found trouble following the new trading method. They complained that information about a land lot, such as the previous bidding prices for a nearby plot, is not clear enough for all bidders.
Ma Zhijiu, development division manager of Shanghai Sitico Real Estate Co Ltd, said small companies may not get access to detailed information of the plots like those government-backed developers.
"The criteria adopted in evaluating the developers' plan are not published," Ma said. "That disappoints the bidders in some cases."
Meanwhile, some developers are offering irrationally high prices to win the bids. That forces the city's land prices higher.
"The developers and investors have become a bit irrational in such a red-hot market," said Leow Juan Thong, general manager of business development and planning of CapitaLand China Holdings Group. "Some developers tend to buy plots only to increase their land reserve.
The higher land prices have put pressure on developers' cash flow and increased investment risk.
The land leasing prices in Xuhui and Luwan districts surpassed 20,000 yuan (US$2,410) per square meter recently. With the highest plot ratio of 2.5 allowed by the government, 1 square meter of a plot may cost 8,000 yuan. The plot ratio refers to the total floor area divided by the area of the plot on which the buildings are constructed.
"Adding managing costs, the apartment prices will easily breach 15,000 yuan per square meter," Leow said.
The housing prices in Shanghai have kept surging for three consecutive years.