Chapter 184 Auction
Shenzhen's land auction pilot has begun, and the city is preparing to keep a low profile.
In May 1984, the temperature was pleasant, neither too hot nor too cold.
There was a notice posted on the bulletin board at the entrance of the small auditorium of the Shenzhen Municipal Government. There were only a few simple lines of text on it, and the most eye-catching one was: At 9:00 a.m. on May 6, 1984, in the small auditorium, the Cuihu Reservoir C01 plot will be auctioned.
The word "auction" is too sensitive, so the city did not dare to use it. After much deliberation, they used the word "bidding".
The city leaders called Jiang Qizhu and told him earnestly: "Land auction is an unprecedented event in our country, and we must be cautious. Through this bidding, we hope to understand the process of land auction, prepare for the next public land auction, and use it to promote the reform of our country's land system. As a real estate company under the Housing Authority, you must be the vanguard, and you must take this land!"
Jiang Qizhu reminded him, "But... there are seven or eight other companies bidding. Liu Ye has a Kyoto background. If Liu Yuanyu is determined to win, he is very wealthy. How can I compete with him?"
The city leaders were very disappointed: "You, you have the city's support, what are you afraid of him doing?"
Jiang Qizhuo still felt unsure. Firstly, the company may not be as rich as Liu Yuanyu, and secondly, Liu Yuanyu has made a harsh statement and will never give in. What if he wants to take the land even at a loss? Jiang Qizhuo and Tao Nanfeng have already done the calculations. Based on the selling price of 2,800 yuan per square meter, the highest price the company can afford for the reservoir land is 5.8 million yuan. If it exceeds 5.8 million, it will definitely be a loss.
He owns a state-owned enterprise, how can he do business at a loss? Isn't this damaging to national interests?
Through the method of trade compensation, Shenzhen real estate companies have completed several real estate projects in Shenzhen, and each step has been steady and solid. Jiang Qizhuo doesn’t have the courage to take the risk of losing money to acquire the land now.
Jiang Qizhu opened his mouth and quietly asked his leader: "Then... can the city quietly help during the auction and bring down the hammer at the critical moment?"
Seeing Jiang Qizhu's cautious look, the city leader laughed: "Old Jiang, we have our own people in the bidding room, don't worry. It's just that the land auction is for the highest bidder, and we can't cross the line. In the end, you still have to rely on yourselves."
The city also has its own considerations. When selling land for the first time, everyone was feeling their way forward and did not dare to blatantly favor anyone. Although the city leaders hope that Jiang Qizhuo can get this land in this internal bidding, whether he can win it depends on his strength.
This invisible pressure made Jiang Qizhuo feel breathless.
On the one hand, the leader instructed that the land must be acquired, and on the other hand, Liu Yuanyu was active everywhere and made harsh remarks. Add to that the cost and profit considerations, and Jiang Qizhu was overwhelmed.
On the day of land redemption, Jiang Qizhuo solemnly changed into a light grey Mao suit, Xiang Bei and Tao Nanfeng both put on formal attire, and they walked into the small auditorium of the city government together.
Jiang Qizhu received a bidding sign with a big number "11" written on it.
Jiang Qizhu was stunned for a moment: "Aren't there only 9 companies participating?"
The staff member smiled bitterly: "Boss Jiang, there is nothing we can do. There are too many companies that have come to greet us. This is the result of the city trying to keep a low profile. A total of 13 real estate companies have participated."
Jiang Qizhu suddenly felt a little nervous. There are so many units competing, and each one has a background. Some are subsidiaries of banks, some are companies of the Shenzhen office, and some are companies of various ministries in Kyoto... No one is willing to submit to anyone else, what should we do?
Tao Nanfeng suddenly smiled softly, his laughter was relaxed and hearty.
Jiang Qizhu's attention was diverted, and he looked at Tao Nanfeng: "What are you laughing at?"
Tao Nanfeng's eyebrows curved, and the whole person seemed like a lotus washed by rain, fresh and bright: "In the land bidding, the highest bidder wins, and it's all about financial strength. This method is really very fair, and no one can use connections."
Under the planned economic system for many years, Chinese people have become accustomed to relying on connections for everything. Use connections to get purchase and sales quotas, use connections to get industrial coupons, use connections to buy good meat and good wine, use connections to get your children into good units...
Land is the foundation of a real estate company, and the quality of the land determines the success or failure of a real estate project.
Nowadays, real estate companies rely on connections to obtain land and good land from the government.
However, once the land auction is implemented, the relationship will no longer exist, and it will all depend on two words: strength! Whoever is richer and can calculate the land price more carefully and accurately will win.
This is a good thing.
Tao Nanfeng felt sincerely happy.
Just like the implementation of the bidding system in the construction market, the promotion of bidding is to create a fair competition environment. Isn’t fairness what we have always been pursuing?
After hearing what Tao Nanfeng said, Jiang Qizhu suddenly felt at ease. Yes, since it is fair competition, it doesn’t matter whether you win or lose or what the result is.
Tao Nanfeng pursed his lips and smiled: "Don't worry, Liu Yuanyu will never get this land." If Liu Yuanyu dares to jump out, he will be beaten to death!
Jiang Qizhu glanced towards the north.
Xiangbei motioned Li Xihu to take the number plate from Jiang Qizhu: "No problem, leave it to us."
Li Xihu nodded heavily: "Okay, if you let me raise the sign, I will."
A group of four walked into the small auditorium.
Because it was an internal bidding, the Shenzhen Municipal leaders did not release the news to the public, but there were still reporters who heard the news and waited at the gate, looking in and asking questions.
As soon as Liu Yuanyu's team arrived at the gate of Shenzhen Municipal Government, they were stopped by reporters and asked all kinds of questions. Liu Yuanyu was very proud: "Our Liuye Company is bound to get this piece of land!" Surrounded by a group of people, Liu Yuanyu felt that victory was waving to him.
After entering the small auditorium, Liu Yuanyu deliberately sat in the same row with Jiang Qizhuo's team.
Across the crowd, Liu Yuanyu raised his number plate to Jiang Qizhu: "We are number 13, we will win!"
Tao Nanfeng glanced at Xiangbei, who stretched out her hand and shook it tightly, and whispered in her ear, "Take it easy."
Tao Nanfeng felt the warm current flowing between his dantian, and drew out a strand of it to stay on his fingertips. He turned his head to meet Liu Yuanyu's gaze and said softly, "Come over here!"
Liu Yuanyu and Ruan Xuezhen could not hear what Tao Nanfeng said, but the sharp light in her eyes made them very uncomfortable, as if they were a pig kept in a pigsty, which could be dragged out to be slaughtered, bones removed and meat eaten at any time.
Liu Yuanyu gritted his teeth and said to Ruan Xuezhen: "You useless guy, how come you can't even handle a woman?"
Ruan Xuezhen shuddered: "You don't know, this woman is very evil, she is very strong and ruthless, I can't beat her at all... How to deal with her?"
Liu Yuanyu was a little unconvinced: "How strong can a woman be? It's exaggerated!"
Ruan Xuezhen hurriedly held him back: "Boss Liu, you must not confront her head-on. It will definitely not work if you use force. Don't let yourself get hurt. It's not worth it. You won the fight, right? It's not honorable to hit a woman. What if you lost? It's so embarrassing that you can't even beat a woman."
Liu Yuanyu snorted, retracted his gaze, and stared at the stage: "Then defeat her in the business world! Make sure she has no place to use her brute force."
Ruan Xuezhen quickly flattered him: "Yes, yes, yes, President Liu is still wise."
With the crisp sound of a wooden hammer hitting the ground, the whole audience fell silent.
Shenzhen city leaders invited auctioneer Wu Yongkang from a famous auction house in Hong Kong to preside over the auction, with Deputy Director Liu of the Municipal Planning Bureau assisting.
The starting price is 2 million, and the bidding will increase in steps of 50,000 each time.
Right from the beginning, the scene was extremely lively. The first auction of 40-year land lease rights. The Cuihu Reservoir land has a beautiful environment and a square plot of land. There is absolutely no problem in selling it for around 2,800 yuan after building a high-end western-style building. Who doesn’t know that it is a good piece of land?
The starting price was 2 million, and one company after another began to raise their bids.
Jiang Qizhu didn't move. Tao Nanfeng has already calculated the cost of this land very clearly. He plans to build 12 small villas and sell them at 2,800 yuan per square meter. The land price of 5.8 million yuan is the break-even point. If the price exceeds this, the company will suffer a loss.
Based on a 15% profit, the reasonable land price is 5 million.
Since 5 million is a reasonable price, raising the sign now is a waste of energy.
Seeing that Jiang Qizhu didn't move, Ruan Xuezhen whispered in Liu Yuanyu's ear: "It seems that their team has already calculated the land price. Let's save our energy and move after 4 million."
Liu Yuanyu nodded: "This is our first piece of land in Shenzhen. We must get it, even if it means losing money!"
"Four million!"
In less than half an hour, the signs were raised frequently and Wu Yongkang called out the numbers again and again. His voice was a little hoarse, but his eyes were shining. The auctioneer loves this competitive atmosphere the most. Only when everyone is competing hard can he get a high price.
Finally, Jiang Qizhuo's team raised the sign for the first time.
“4.05 million!”
Liu Yuanyu signaled Ruan Xuezhen to hold up the sign.
"4.1 million!"
Once the amount exceeded 4 million, the number of companies raising their placards gradually decreased. When it reached 4.8 million, only No. 11 and No. 13 were still taking turns raising their placards, increasing by 50,000 each time, and the two sides were competing fiercely.
Li Xihu's forehead began to sweat, and the hand holding the sign began to tremble. 4.8 million. The land price is only 200,000 away from the estimated 5 million with a 15% profit. He swallowed and asked, "Do you still want to raise money?"
Tao Nanfeng nodded calmly: "Raise it!"
Li Xihu raised his hand and wiped the sweat off his face with his elbow. When the number 11 was displayed, Wu Yongkang on the stage immediately caught sight of it and shouted, "Number 11, 4.85 million!"
Liu Yuanyu raised his chin nonchalantly, and Ruan Xuezhen raised his right hand and held up the number 13 card high.
"Number 13, 4.9 million!"
Everyone at the scene held their breath. The bidding started at 2 million and is now approaching 5 million! The leaders in the first row saw this scene and were both happy and nervous.
The good news is that the 5 million construction funds can build nearly 600 sets of employee housing, repair the Shenzhen-Guangzhou Avenue, and build two primary schools and a hospital. This is a timely help for the city!
What’s worrying is that everyone has come to a conclusion from their rich urban practice experience: too much is as bad as too little. If the land price is too high, the housing price will inevitably rise. If this causes public dissatisfaction, the city will not be able to bear it.
The city leader picked up the teacup, took a sip, and winked at Deputy Director Liu on the stage.
Deputy Director Liu understood the city leader's intentions. As No. 11 was raised again, he picked up the auction gavel on the table and slammed it down: "No. 11, 4.95 million, once!"
Jiang Qizhu was delighted to see that the city leaders were indeed helping him.
Liu Yuanyu ignored him and pushed Ruan Xuezhen hard. Ruan Xuezhen quickly raised his sign and shouted, "5 million!"
Wu Yongkang was well-trained. He put the five fingers of his right hand together and pointed at Liu Yuanyu from a distance: "Number 13, 5 million! Is there anyone else holding a sign?"
There was a lot of noise in the audience, and everyone was shocked by the fierce scramble and competition.
"No way? Is there still money to be made after 5 million?"
"The current housing prices in Shenzhen are around 2,500 yuan, and the land price is 5 million yuan. How can you make money?"
"Are No. 11 and No. 13 crazy? They want to do business even if it means losing money!"
There was a lot of discussion below. Liu Yuanyu turned to look at Jiang Qizhu, who had a stiff expression: "Boss Jiang, are you still going to fight?"
5 million is already the reasonable land price, and the profit margin is only 15%. We also have to consider whether the house price of 2,800 yuan can be sold.
what to do? To raise a sign or not?
Li Xihu was obviously a little scared.
Judging from the other party's attitude, they will not give up until they get this piece of land. What should we do? Do you still want to follow?
Wu Yongkang shouted loudly on the stage: "5 million once, 5 million twice..." He raised the auction hammer high in his hand, and everyone stared at the hammer in his hand. If he knocked it for the third time, the land would be sold to Liu Yuanyu!
Tao Nanfeng whispered: "Raise!"
Her voice was low and soft, but it carried an indomitable spirit, which suddenly gave Li Xihu courage. He tried hard to control his right hand and raised the sign little by little.
Wu Yongkang put down the auction hammer, and his shout resounded throughout the venue, almost roaring with excitement: "Number 11, 5.05 million!"
Liu Yuanyu folded his arms, leaned back, and said in a voice that everyone could hear: "Go on!" We must take this first piece of land even if it means losing money!
Ruan Xuezhen giggled and wanted to raise the number plate in his hand amid the noise.
Tao Nanfeng's eyes darkened and he finally took action!
Lock! The energy in Dantian surged to her fingertips. She formed a hand seal and watched the white energy at her fingertips turn into a light gray. She flicked her fingers and a wisp of gray energy flew out.
Ruan Xuezhen held the number plate tightly in his right hand and placed it on his legs. When he heard Liu Yuanyu's signal, he was about to raise his hand, but found that his hands were nailed in place and could not move at all.
Ruan Xuezhen was really panicked. He tried desperately to move his hands, but he couldn't move them. It was as if a heavy burden was pressing on his hands.
Liu Yuanyu noticed something was wrong and growled, "Raise the sign quickly!"
Deputy Director Liu on the stage gave Wu Yongkang a push.
Wu Yongkang reacted, slammed the gavel down hard, and shouted loudly: "Number 11, 5.05 million, one time..."
Professional habit made Wu Yongkang pause for a moment.
The pressure was too great, and Li Xihu's right hand was shaking. He could hardly hold on: "Knock faster, knock faster!"
Ruan Xuezhen was so anxious that he was sweating all over his forehead, but he seemed to be possessed by an evil spirit and couldn't control his hands at all. He shouted anxiously: "My hands can't move."
Tao Nanfeng's movements were so small that others could not notice them at all. She originally didn't want to use the soul-locking technique she learned from Yi Tiancheng. After all, metaphysics was a bit bullying. But Liu Yuanyu’s team is too arrogant and we must not let him get the land.
"5.05 million, twice..." There was a buzzing sound below, and Liu Yuanyu panicked. He rushed over and snatched the number plate from Ruan Xuezhen's hand.
"Snap!" Liu Yuanyu had just grabbed the number plate and was about to raise it when he heard a loud crisp sound from the stage, followed by Wu Yongkang's lion roar: "5.05 million, three times! Congratulations to No. 11 for winning the Cuihu Reservoir C01 plot!"
"Oh——" Li Xihu jumped up excitedly.
Jiang Qizhuo waved his hands excitedly and stood up from his chair. Success! Finally got this piece of land, fortunately I have accomplished my mission!
Tao Nanfeng once again released a stream of white true energy, and the gray mysterious energy that locked Ruan Xuezhen's hands immediately dissipated. Ruan Xuezhen suddenly found that his hands could move. The force that bound him disappeared, and inertia made him raise his hands suddenly and slap Liu Yuanyu in the face.
Liu Yuanyu and Ruan Xuezhen were both stunned.
Ruan Xuezhen was so frightened that his face turned pale: "Boss Liu, I didn't mean it. I...my hands suddenly became able to move again."
Liu Yuanyu stared at him, slowly raised his hand, and slapped him hard: "Get out!"
Tao Nanfeng saw this farce, twirled his fingers and smiled brightly. Although metaphysics is not science, it is good that it can come in handy at critical moments.
The author has something to say:
The first land auction in my country took place in December 1987, and the land was won by Luo Jinxing's team from a Shenzhen real estate company. The first land auction in the country caused a great response at home and abroad, further promoted land system reform, and laid the foundation for the rapid development of the real estate industry in the future. It has epoch-making significance. This section of the novel is based on this incident, with the timeline advanced and artistic processing done. Just have fun with it~
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