China expects to use a market-based mechanism to control its land
sales within five years, Tian Fengshan, minister of land and
resources, said yesterday in
Hangzhou at
a national working conference on land assets management.
"One major factor in this will be to ensure all applications for
land, especially those involving profit-driven real estate
projects, are resolved through public bidding," he said.
Public bidding is an accepted practice around the world, used to
ensure transparent and fair land-related deals, the minister
further expounded.
Tian believes the move, essentially an overall replacement of the
former government-based mechanisms, is necessary to fit in with the
rules of the World Trade
Organization.
The minister asked land administration offices at all levels to
shift their focus to supervision of the implementation of related
laws and regulations.
Under market-based mechanisms, land deals have to be decided
publicly, though the specific methods used may differ.
A
special committee will review applications for land for public
uses, and approve them or ask for reasonable financial compensation
in cases which violate government regulations.
"All lands allocated should be listed in publicly issued
catalogues," said Tian.
But under the new mechanisms, the ministry will shoulder a new
responsibility to oversee the land price rates published regularly
by various Chinese local governments to ensure an overall dynamic
balance.
Luckily, the country has already accomplished this to some measure,
and is carrying on steadily with reforms paving the way for the
eventual fulfillment of the goal.
After several years' efforts, the ministry has successfully
introduced the idea of treating land as valuable national property
that should be priced according to market demand.
A
recent survey of the ministry indicated payments made for more than
40 percent of last year's allocations of reserved land were
reasonable.
In
addition, 1,087 municipalities have established land markets, and
more than 90 percent of Chinese provincial regions have launched
public land bidding mechanisms of varying scale.
(China
Daily December 6, 2001)