Land value capture through market-oriented public land leasing

This research mainly focus on the studies of land values capture instrument, namely, public land leasing. Particularly, this research conducted under the circumstance of China, which we introduced a market-oriented land leasing mechanism called bidding, auction and listing leasing system. In the past decades, local government generates revenue from land to finance infrastructure implementation. With respect of bidding, auction and listing approaches, compare with the past land dispose methods, it made considerable land revenue. This research intended to figure out land market with different land transfer method in Changsha city. More significantly, to testified the high profitable and effective of bidding, auction and listing leasing approaches. Besides, in terms of social perspective, the metro system establishment will be select for interpret the land value appreciate by infrastructure and land revenue feedback for metro construction. This research is a descriptive research, which intended to comprehend the land value capture concept in the real operation, to find how of market-oriented public land leasing performed in Changsha city and analysis and summarize its merits and demerits. Due to the data collection and analysis, there are three major findings or conclusions. Firstly, bidding, auction and listing leasing approaches abide by the market rules and generate more revenue than other means, besides, it reflect the real relationship of land supply and demand. Secondly, land value can be affect by metro implementation, which precisely matches the notion from land value capture that government sharing the incremental land value for public goods, which is a feasible circle for this progress. Because of metro produced land appreciation. Thirdly, land revenue is adequate for current metro construction, however, for long-term metro project, land revenue has its own shortage and need financing diversification. In summary, although bidding, auction and listing mechanism have certain imperfection attribute to many reason, however, it perform fair enough as a land value capture instrument to generate revenue and financing for initial part(2 metro lines) for metro system finance in Changsha city.