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China Daily Website

Vice-minister cautions against land inflation

Updated: 2013-09-26 21:58
By WANG YING in Shanghai ( chinadaily.com.cn)

Land available for nationwide property development increased 34.4 percent year-on-year from January through August, with land for residential use increasing 33.9 percent from the previous year to 80,200 hectares, close to the average annual amount over the past five years, Xinhua News Agency quoted Vice-Minister of Land and Resources Hu Cunzhi as saying.

“We have to notice the complicated factors behind the 'land kings' created in the land auctions, which include the growing demand from property developers for buying new land on the back of robust sales of residential projects, and the support from local governments that help push land prices to higher levels and influence market expectations,” Hu said on Wednesday during a symposium held by the ministry.

In addition, some local governments release premium land spots extensively to raise money to repay debts, while ignoring the land demand/supply equilibrium, Hu said.

Hu also noted the priority of the ministry in the fourth quarter will be to strictly prevent exorbitant land prices at auctions, as part of its efforts to stabilize the land market, “as the fourth quarter will see a new round of land supply based on previous years' experience”.

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