A Market Operation Pattern In Purchasing And Reserving Land

The land has two characters of resource and asset. It is an important resource, as well as an important asset. The total amount of our country's land assets is more than 25000 billions yuan(RMB). How to make good use of it? Our country began to found the land-using with compensation system at the beginning of 1990's, established the land market pattern on the basis of land usufruct. The value of land is more important than ever. But with the land flowing into the market dispersedly, it brought about many disadvantages, for example, losing control of the land providing and the land price, wasting of the land resources, etc. To resolve these problems, our country practices the land purchase and reserve system, monopolize the first land market, found the new operation model of the land finance, and the pattern of collocating the land resources through the market comes into being. The urban land purchase and reserve system is a operation pattern or a management model that the land reserve institutions exploit and reserve the land obtained by takebacking, purchasing, exchange or requisition, according to the laws, market mechanism, the land use planning and the urban planning, to supply and control the demand of all kinds of urban construct land. The land purchase and reserve system originated in Holand in 1896,followed by Sweden,Hungary,Belgium,Danmark,Germany and Australia ,etc. The first land reserve institution of our country the land development center of Shanghai came into existence in 1996, symbolized a new stage of the reform of our land-using system. Powerful decision-making, open information, abundant capital and efficient operation system are four essential factors in the purchasing and reserving Land. How to make decision? What role does the government act? The key lies in the government's positioning of the land reserve institution. At present, one viewpoint is that it should be a non-profitable organization. Its'main purpose is to increase the financial income and to resolve the problems on the reform of state-owned enterprises. Another viewpoint is that it is a land exploiting and managing center, which has functions of developing land and increasing the land value; Firstly, it conforms to the concept of "the city management"that mainly points to "the city land management"; Secondly, the land reserving is a process of making money, the land reserving institution should be an independent enterprise that operates fully according to market mechanism, and the governments'role is a stockholder. Now, there are many operation model of the land market in our country, for example, "Shanghai model"controlled mainly by market, "Hangzhou model"controlled mainly by government, and "Wuhan model"controlled synchronously by market and government. The land reserve center's experience of Shanghai Nanhui district is meaningful and creative. The land reserve center took over a land development company, and participated in developing land. It took the lead in land requisition by the land transferring, raised money in time, and provided the compensation fee entirely to ensure the farmer's benefit after land requisition. And the center made plans, consolidated the reserved land, and increased the land value. By mortgaging the land-using right, remising the land and looking for commercial chance and investment, the center became a really "land bank". However, every model must comply with the regulations of market economy. This paper aimed to offer academic research in the market operation model of land purchasing and reserving. The land purchasing and reserving is a measure that the governments provide the land by market, a measure of managing the land, and a measure of resolving the problems in the reform of state-owned enterprise. It is inevitable to turn the model controlled by government to the model controlled by market in the land capital market. This paper explained the land market operation in detail based on abovepoints. Financing is a bottleneck of the land purchasing and reserving in the land market. Some data indicate that except for the start capital provided by financial department at the beginning of the land purchase and reserve system in the first land market, all the capital needed is from the bank loan, and there are financing problems in housebreaking, land evenning, fundamental facilities too. Reviving the capital attached on the land into circulating field will increase the social capital sources. The participator's ability of financing and capital arranging,diversity ways of financing and the resist of monetary risk are new questions in the land capital operation. When the land capital is running by the enterprise independently, the land financing will turn from single loan financing to a mix of bond financing, fund financing, stock financing, and the financing innovation of the land market will be achieved. In addition, the land capital operation market is involved with cost and income, and also involved with the income of bank and the real estate investor. So we should avoid unnecessary mistakes by scientific analysis and decision. This shows financing policy has a crucial effect on the land market. The land purchasing and reserving is an important measure of controlling the land supply. The land development companies are consigned to purchase,reserve and develop the land. With good management of the land operating capital, it can monopolize the first land market, thus become the governmental consignee. The land remising system now permits only that the land administrative departments execute remising land, which is administerial behavior and is not beneficial to establish equal economy relationship. It needs to adjust the legal relationship if the land development companies remise land, and the governments also need to enact some regulations, for example, the land remise planning, the remised land arrangement, etc.