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Developers face penalty for hoarding plots
By Cherry Cao |
June 8, 2012, Friday
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Print Edition
Print Edition
REAL estate developers are to be charged a 20 percent fee if they hoard land plots and leave them idle for more than a year but less than two years while plots left untouched for more than two years will be reclaimed by the government, the Ministry of Land and Resources said yesterday.
The move, announced on the ministry's website, is its latest effort to ease a nationwide shortage of land. Effective from July 1, the fee, based on the price paid for the land, will be levied across the country.
An earlier document had said that developers "might" be charged a maximum of 20 percent and their land "might" be taken by the government.
"The different wording used by the ministry indicates that the central government has become more determined to crack down on the problem of land hoarding around the country 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 to be good as the country's land market has been rather quiet in the first five months of this year as rein-in measures to curb housing speculation has dampened both developers' interest in land acquisition as well as local governments' willingness to release parcels due to sluggish sentiment."
Plots that have been left idle due to problems involving the government should be dealt with as quickly as possible in an appropriate manner such as changing their designated purpose, bartering, assigning temporary use for them or retaining them for government reserves, the ministry said.
A document released by the ministry earlier showed that plots involving 918 projects with a total area of 58.93 million square meters have been found idle in 43 Chinese cities, the National Business Daily reported last month.
The move, announced on the ministry's website, is its latest effort to ease a nationwide shortage of land. Effective from July 1, the fee, based on the price paid for the land, will be levied across the country.
An earlier document had said that developers "might" be charged a maximum of 20 percent and their land "might" be taken by the government.
"The different wording used by the ministry indicates that the central government has become more determined to crack down on the problem of land hoarding around the country 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 to be good as the country's land market has been rather quiet in the first five months of this year as rein-in measures to curb housing speculation has dampened both developers' interest in land acquisition as well as local governments' willingness to release parcels due to sluggish sentiment."
Plots that have been left idle due to problems involving the government should be dealt with as quickly as possible in an appropriate manner such as changing their designated purpose, bartering, assigning temporary use for them or retaining them for government reserves, the ministry said.
A document released by the ministry earlier showed that plots involving 918 projects with a total area of 58.93 million square meters have been found idle in 43 Chinese cities, the National Business Daily reported last month.
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