1.Goals of Land Market Building During the Tenth-Five
Year Plan
The main goal of land property administration during the
Tenth-Five Year Plan is to upgrade the level of intensive land use
for construction purposes in all respects with an aim to increase
the useful supplying capacity; to deepen the reforms in the land
use system in all aspects so as to established a unified, fair,
standardized arid orderly land market; to develop a full
administrative infrastructure so as to enhance the technology
content in lands for construction purposes and land administration;
to completely shift the government's functions on administration of
land property and enhance the administration level by law.
The National Outline for the Administration of Land Property
during the Tenth-Five Year Plan clearly defined the main
expected goal of China's land market building, which included:
implementing the systems of controlling total supplies of lands for
construction purposes and the unified administration of lands, and
the supply and use of construction lands must comply with the
general plan and annual plan of land use; strictly carrying out the
system of compensated land use, standardizing land-supplying
behaviors of the government, enhancing the transparency thereof;
the land used for business real estate must be supplied by way of
auctioning, tendering and preset prices, the contractual transfer
activities must be standardized ; encouraging the land lease
mechanism and establishing a market formation mechanism of land
price ; strengthening the government's ability in regulating and
controlling the land market, and establishing the land acquisition
and reservation system in those counties meeting with the
conditions; perfecting the transaction rules for the right of land
use, strengthening the supervision and administration of the market
and the land market order being basically standardized ; improving
the social servicing functions of the government, and establishing
the physical land market in those cities and counties meeting with
the conditions and fully carrying out the information briefing
system of lands for construction purposes.
2. Increasingly Expanded Scope of Government Supplied
Lands with Compensation
Along with the establishment of socialist market economy system
in all aspects, there will be a higher and higher market-oriented
degree in the government supplied lands. The scope of
government-supplied lands with compensation will be continuously
expanded, and on the contrary, the scope of allocated lands will be
gradually reduced. The objectives being used with compensation will
be further detailed to the extent that among the lands of the same
class, the types of supplying the lands with compensation and
allocation will be further finely defined according to their
specific functions and usages. The standardization system of means
of supplying lands will be completely established, and the
government will transfer land for business purposes mainly in the
form of tender and auction. As for the contractual transfer of
lands, it will be standardized according to the procedures of
"market evaluation, collective decision making, equal negotiation
and release of results".
3. Increasingly Higher Level of Market Fairness and More
Equal Competition
Preferential policies for some special entities in land use will
be gradually eliminated, and the preferential policies granted by
the government in supplying lands will not be focused on some
certain entities but also on some certain usages of land. Different
entities will be equally treated in the means, cost and
opportunities when acquiring lands from the government. The
input-and-output relation among different means of acquiring lands
with compensation basically attains its balance. Rights
respectively vested in state-owned lands and collective lands for
construction purposes will incline to be equal, and the right of
use of collective lands will enter the market in a certain
compensated means.
4. Government Regulation of Market to Be Performed at
Distinctly Divided Levels by More Market-Oriented
Measures
The central government and provincial governments will lay
special emphasis on the control of total supplies of newly-added
lands for construction purposes will be reduced resulting in an
increase in cost of land use; the value of stock lands, especially
the stock allocated lands of which will be further highlighted to
the local governments. For this reason, to regulate and control
total supplies of the stock lands for construction purposes will
become the internal demand to the local governments and the city
and county governments will become more concerned about the
regulation and control of the stock lands. To examine the
diversified and market-oriented means of regulation and control
laterally, the prices of government supplied lands will play a more
obvious role in regulating and controlling the land market. The
land price will serve as the price lever in affecting the quantity
of allocated lands entering the market, the transfer quantity of
transferred lands and demands for land in the land market. Through
regulating the level of land prices, the land market is stabilized
at the point of balanced supply mad demand. In the future, the
government will regulate and control the land market mainly through
economic means. Land acquisition and reservation system, serving as
the effective means and system in controlling total quantity of
lands, will be widely carried out by the government. The land bend
and legal documents in exchange for land etc will gradually be the
main policy and financial tools in regulating and controlling the
land market.
5. Land Transaction to be Further Standardized Allowing
more free Flow of Factors
To establish and perfect rules governing land transaction
according to the market rules is not only required by the
government but also by the entities in the land market. Firstly,
the land property will show a clearer formation and China's land
property system will be regulated and perfected through all kinds
of channels, the protections imposed on land property by the
government will be further intensified, and the resource allocation
efficiency resulted from land property transaction will tend to be
more optimized. Secondly, the restrictions on some certain special
transactions will be intensified. The transfer of allocated land
must be reported in advance and enter the market to realize its
transfer according to plan. Thirdly, the government shall have the
first priority in purchasing land, and for those land transactions
priced obviously lower than prices in the market, the government
will perform its priority in purchasing. Fourthly, the punishments
on illegal transactions will be intensified. The behavior in
transaction of land use right will become more standardized. China
will impose strict measures on the administration of transfer,
lease and mortgage of land use right. Stricter rules will be
enforced in connection with allocated lands entering the market and
any allocated land not approved and purchased by the people' s
governments with the due power of approval will not be allowed to
enter the land market. China will lay stress on formulating the
related regulations and policies concerning the public transaction
of land use right (including tender, auction, transfer etc), flow
of lands for collective construction purposes, land acquisition and
reservation, disposal of idle lands, lease of right to use
state-owned lands, administration of right to use allocated lands,
withdrawal of state-owned lands, administration of land price
etc.
6. More Services Provided to the Market by Government
and More Transparent Administration
The government will provide more services for land transaction
places and in the field of information collecting and briefing on
land transactions in a more efficient way. The information sharing
system will be gradually improved and the information cost in land
transaction will be reduced to a certain extent. The government
will release tile information concerning the total supply of land,
land plots already supplied, transaction of land use right in tile
market, market forecast, list of restriction and prohibition oi1
government supplied lands, baseline land price, together with the
comprehensive information of supplied lands. The government
administration efficiency will be continuously enhanced and be made
more transparent with its behaviors more standardized. China will
establish the system of collective decision-making concerning such
important issues as determination of land price, land property
disposal and supply of land for construction purposes with an aim
to controlling and restricting the administrative powers.
Administration will be conducted in strictly compliance with law
and governmental intervention in market will be further reduced.
The examination and approval system will be reformed whereby tile
issues subject to examination and approval will be reduced, the
behaviors in examination and approval standardized, the procedures
simplified, to improve the government efficiency in handling
formalities relating to transactions in the land market. According
to the development conditions of the market, the physical land
market will be established to provide more services, where the
transactions in land use right can be publicly performed. The
information briefing system of lands for construction purposes,
baseline land price releasing system and land inquiry system will
be put into use.
7. Intermediary Organizations Developing with More
Complete and Standardized Functions
Facing with increasingly intense competitions in the market,
intermediary organizations in the land market will be
reconstructed, reorganized and disintegrated in a wide degree. Some
intermediary organizations are gradually gaining advantages in
status and scale. Some small-size intermediary organizations are
standing at the crossroad: either being merged or being forced to
withdraw from the land market. According to the actual demands in
the market, some new services will come into being, including
market consultation, agency for transaction, investment planning
and property registration etc. Intermediary services will become
more standardized. The government encourages the development of
some certain intermediary organizations in the field of land price
evaluation, agency for tender and auction, agency for land
transaction and consultation etc. The trade discipline will be
carried out to urge the industrialized development. The punishments
on illegal behaviors will be strengthened to force intermediary
organizations to conduct their businesses in an independent,
objective and fair way.
The shift of land flow from allocation and contractual transfer
to public tender and auction indicating a higher degree of
publicity intensively shows the progress in means of land flow,
which is the trend of the times. After going through hardships of
actual exploration and full promotion, the land market building in
China will take the standardization of land market aiming at
complying with the demands to improve the market economy system
after China's accession to WTO as the main focus on carrying out
the reforms in the land use system in the next few years. The
achievements have laid a solid foundation for the long-term
development of China's land market and accumulated enormous force
for a new rapid development. In the new century, China's land
market will step into a phase with the full development of
standardization to become a comparatively mature factor market. The
gradual maturity and improvement of China' s market economy system
will provide a wide space and a great many of opportunities for the
development of land market.
(China.org.cn November 7, 2003)
