26 plots left idle over 2 years

   Date:2010/12/31     Source:
CHINA yesterday published a list of 26 land parcels nationwide that had lain idle for more than two years.

Five residential projects in Shanghai's Songjiang and Minhang districts, are on the list, the Ministry of Land and Resources said yesterday.

The 26 parcels cover a total area of 201.7 hectares.

Parcels undeveloped within two years of the signing of the leasing contract "should by all means" be reclaimed by the authorities, the land watchdog said in its statement.

Developers are required to pay 20 percent of the land price as punishment fees if parcels are undeveloped for more than one year and less than two years, according to a 2008 regulation.

The oldest parcel in the list dates back to 1993. The land parcels in Shanghai were auctioned between 2001 and 2003.

"The reclaimed land could be re-auctioned to increase the supply of land," said Lu Qilin, a Shanghai Uwin Real Estate Information Services Co researcher.

China has rolled out several measures to tame the property market, with land regulation at the forefront in the drive against speculation.

The ministry said earlier this month that local governments across China should continue to implement strict tightening measures to curb property speculation and closely monitor an increasingly overheated land bidding market in some parts of the country.

For land parcels sold at more than 50 percent above their starting price, or plots auctioned for new highs in total price or price per gross floor area, local governments are required to report to provincial land authorities and the ministry within two working days of the deals being confirmed, the land regulator said.

Local land authorities should also control the pace of land releases and try their best to prevent extremely high prices during auctions.

In March, China required developers to pay 20 percent of a land parcel's starting price as a deposit.

Previously, there was no official requirement on deposits and real estate developers usually paid a deposit of about 10 percent or less of a parcel's starting price.

Developers are also required to pay a downpayment equal to 50 percent of a plot's price.

The quota of one new home per household and limited loans are also among the measures to curb speculative demand from home buyers.

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