Developers will be charged a 20- percent fee if they hoard land
plots and leave them idle for more than one year but less than two
years after acquiring them, the State Council said in a notice on
its website on Monday.
The council, China's Cabinet, also said that land plots left
aside for more than two years will be reclaimed by the
government.
The fee, equivalent to 20 percent of the land transaction price,
will be levied strictly from now, industry experts said.
Previously, the fee was not regarded as obligatory since the
government said it might be charged on "principle."
The tougher measures, the latest in a series of macro control
policies which aim to cool the country's red-hot real estate market
and curb soaring property prices, will likely impact greatly
domestic land supply, industry analysts said.
"The nationwide shortage of land supply will probably be eased
when such heavy-handed measures are implemented," said Xue
Jianxiong, head of research at Shanghai Youwin Real Estate
Information Service Co. "By imposing (the fee) stringently, the
government will be able to have an overall control of its land
reserves."
Land left untouched for more than two years will be taken back
by the government. Plots that couldn't be legally reclaimed should
be dealt with as quickly as possible in appropriate ways such as
changing their designated purpose, bartering, assign temporary uses
for them or retain them for government reserves, according to the
notice.
The notice also said the Ministry of Land and Resources should
join forces with other relevant departments to work out detailed
plans regarding land appreciation fees on idle plots.
A tight land supply has been long attributed as the major reason
for surging housing prices across the country.
The government's determination to implement the tough measures
is certainly good news to both home buyers and qualified developers
who have been plagued by the land shortage, industry officials
said.
A recent survey has found that the local supply of residential
properties will likely remain tight for at least three years due to
insufficient land supply over the previous years.
Prices for the city's new apartments, excluding budget homes and
houses meant for relocated residents, rose more than 10 percent
last year on average compared to 2006.
(Shanghai Daily January 9, 2008)
