The "highest bidder" policy of land transfer refers to the granting of the right to land transfer to the highest bidder in the process of land transfer, according to the bidding situation of the land transferred. The resumption of this policy is mainly due to the following reasons.
First of all, the restoration of "the highest price takes" can ensure the effective use of land resources to the greatest extent. Due to the limited land resources, the rapid growth of population and economy has led to the shortage of land, and the transfer of land through bidding can ensure that the land use right is delivered to the investors with the highest awareness of its value, which will help promote the scientific allocation and efficient use of land resources.
Second, the reinstatement of "the highest bidder wins" can encourage investors to participate more actively in bidding and increase the selling price of land sales. Compared with the previous non-bidding method, the restoration of "the highest bidder" can better mobilize the enthusiasm of investors and attract more funds to flow to the land market, thereby increasing the income from land sales and improving the profitability of local finances.
Thirdly, the restoration of the principle of "the highest price takes" will help curb speculation and irregularities in the process of land transfer. In the absence of a bidding mechanism, land transfer is carried out in the form of public bidding, which is prone to bidders colluding to obtain land use rights through low-price bidding, thereby making huge profits. The restoration of "the highest price wins" can effectively eliminate this phenomenon, prompting investors to bid based on the actual value of the land, and avoiding speculative bidding.
In addition, the restoration of "the highest price takes" can increase the transparency and fairness of the land transfer market. When the land transfer is carried out by bidding, all bidders have the opportunity to learn about the other bidders' ** and make adjustments accordingly. This open and transparent bidding process helps to eliminate the problem of information asymmetry in the industry and makes the land transfer process more fair and just.
However, there are certain limitations and problems with the resumption of the "highest price takes" policy. First of all, the bidding method may exacerbate the volatility of the land market, making the land** more susceptible to market fluctuations, thereby increasing the operational risk. Secondly, if the competition is not sufficient, only a few people participate in the bidding, which may lead to the land being over-exaggerated, making the actual development cost difficult to bear, thus affecting the development speed and market of the land.
In general, the resumption of the "highest price" policy is conducive to the effective use of land resources and fair competition in the market, but at the same time, it is also necessary to balance the economic value and social benefits of land to ensure that the process of land transfer can not only maximize the economic benefits of land, but also conform to the direction of social public interest and resource protection.