Guangzhou has proposed launching a land sale system similar to the application list in Hong Kong as it seeks to cool home prices.

But an analyst said the move was unlikely to work because it would only result in a fall in land supply, leading to further rises in home prices.

In response to a central government campaign to control runaway property prices, the Guangzhou municipal government on Thursday announced seven measures to control land prices and increase the supply of government subsidised homes for low and middle-income groups.

The measures included the adoption of Hong Kong's land sale application list system.

Under Hong Kong's application list system, a developer can trigger an auction of a site on the land reserve list by making a guaranteed bid that is at least 80 per cent of a site's minimum price.

South China Morning Post