| “Three old" reconstruction is referring to the transformation of the old town, the oldplant, and the old village. The Three Old reconstruction is a widespread and systematicproblem. It requires the implementers to have comprehensive ability, to consider widely fromthe people’s livelihood, local policy, to the market. Generally speaking, the Three Oldreconstruction project will stimulate the market products and market planning, increasemarket supply and in the end bring a direct demand for property. It will make the city a newlook, leveraging new level of urban development.The key to the success of the Three Oldreconstruction project is the developers’ mind has to meet the needs of urban development,thus boosting regional development. In the context of urban upgrading, the developers of theThree Old reconstruction project earn the scarce opportunity to award the lagging land sourcein the central urban area. However, the market competition is intense, how effective businessstands out in numerous similar projects is a major problem. The developers shall have awin-win concept. They shall not only take into account the support of the people and thepeople’s livelihood, solve resettlement and other relative issues, but also allocate properlyvarious interests. The Three Old reconstruction is not a profit-making tool. The developershave to bear the corresponding social responsibility.On the other hand, during the early stage of the reconstruction of Three Old, thedevelopers need to withstand the tremendous financial pressure, as well as the risk of variousuncertainties. In this case, the effective communication between the developers and thegovernment can help the developers to dispel the worry of the future, and can allow thedevelopers to make a detailed budget analysis of future earnings. It is an effective way toimprove the success rate of the Three Old reconstruction project. How to make an agreementbetween the developer and the government to stand the test of the market, which requires anew way to sell the land, other than government bidding, auction and land transfer.Recently, the Ministry of Land and Resources raise the method of the "Application List"which is an effective supplement to the current faulty land transfer policy. Significantcharacteristics of this method are the adequacy of the information sources, the target of the land supply plan and information symmetry. In this way, the developer can conduct marketresearch to fully understand the market status before the land is to be transferred. The landsupply plan worked out in that way can meet the market demand, and ensure the success ofthe auction rate. At the same time, by using the List policy provides sufficient time to thedevelopers to make decisions, the transparent and accurate information environment also helpthe developers to make decisions.I have experienced one of the Three Old reconstruction projects. The specific mode ofoperation is: base on the statutory Blue plan, the Government firstly assign a developer tocarry out the demolition of an old villages; When the demolition project completes, the landturned into a net form, the developer should open a project stating the corresponding designand planning standard; Thus the Government should audit and adjust the proposed project,and then the land use right can be auctioned in the primary market. Such land transfer mode issimilar to the Application List policy used in Hong Kong. It brings enormous affect to makingdecision on a project investment. |
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