In comprehensive news, although the Chinese government has offered various measures to limit land prices and speculation in recent years, local governments’ revenue from land concessions has not abated.
According to China’s Ministry of Finance on March 18, revenue from the sale of state-owned land use rights in the first two months of this year was RMB 1,123.6 billion, up 67 percent from the same period last year, accounting for 52.6 percent of local government revenue in those two months.
The continued growth in land transfer revenue this year is linked to the land auction frenzy since the start of 2021, according to the Economic Observer. Citing data from the Centaline Property Research Institute, the report noted that as of Feb. 24, revenue from land sales in the 50 cities with the highest revenue from land sales reached 473.5 billion yuan, up 42 percent year-on-year. However, land sales in February declined relative to January.
At the end of February, 22 cities launched a “concentrated land supply” policy to restrict land sales, and the overall supply of land in 22 cities fell by 30% in March from a year earlier. Other cities may also follow suit and adjust their land supply plans.
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