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Developers face 20% charge for leaving plots idle
By Cherry Cao |
June 7, 2012, Thursday
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Online Edition
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REAL estate developers "must be" charged a 20 percent fee if they hoard land plots and leave them idle for more than a year after acquiring them while land plots left aside for more than two years "must be" reclaimed by the government, China's Ministry of Land and Resources said today.
The measures, announced on the ministry's official website, are the latest effort by the country's land regulator to ease a nationwide shortage of land.
Effective July 1, the fee, equivalent to 20 percent of the land transaction price, will be levied across the country, the ministry said in a statement.
In an earlier ministry document it said developers "might be" charged a maximum 20 percent fee if they leave plots idle for more than one year but less than two years and land plots left untouched for more than two years after the acquisition "might be" taken back by the government, according to an earlier document.
"The different wording used by the ministry clearly indicates the central government is now more determined to crack down on the problem of land hoarding, which has been cited as one of the major reasons for surging property prices," said Song Huiyong, research director at Shanghai Centaline Property Consultants Ltd. "The timing to impose such rules also seems good. The land market has been rather quiet in the first five months of this year as rein-in measures to curb housing speculation have deterred developers from acquiring land and local governments haven't released many plots due to very sluggish sentiment."
The measures, announced on the ministry's official website, are the latest effort by the country's land regulator to ease a nationwide shortage of land.
Effective July 1, the fee, equivalent to 20 percent of the land transaction price, will be levied across the country, the ministry said in a statement.
In an earlier ministry document it said developers "might be" charged a maximum 20 percent fee if they leave plots idle for more than one year but less than two years and land plots left untouched for more than two years after the acquisition "might be" taken back by the government, according to an earlier document.
"The different wording used by the ministry clearly indicates the central government is now more determined to crack down on the problem of land hoarding, which has been cited as one of the major reasons for surging property prices," said Song Huiyong, research director at Shanghai Centaline Property Consultants Ltd. "The timing to impose such rules also seems good. The land market has been rather quiet in the first five months of this year as rein-in measures to curb housing speculation have deterred developers from acquiring land and local governments haven't released many plots due to very sluggish sentiment."
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