Source: CCTV.com

11-26-2007 10:46

The government is working to rein in land speculation. Authorities in Beijing and Guangzhou are cracking down on companies guilty of stocking piling land in downtown areas.

In order to better regulate China's real estate market, major cities like Beijing and Guangzhou are implementing a series of measure to clean up unused lands, and punish developers' that are stocking up on lands.

Over in Guangzhou, the municipal government has issued an ultimatum to three developers for stocking piling land. The three developers have together accumulated more than 84,000 square meters of unused land, mainly located in the city's downtown areas.

Li Zhenwei, Official of Guangzhou Real Estate Association said "Five or six years ago, land auction was not common in Guangzhou. Most lands were sold via agreements between the two parties. The price was about 1000 per square meter at that time or even cheaper. However the price now is more than 5000.

Guangzhou's Municipal government is demanding that the three developers begin construction within two months, or risk having the unused land revoked. Not long ago, Guangzhou government recalled nearly 1 million square meters of unused land.

Meanwhile in the capital, the Beijing Municipal government has decided to reclaim eight plots of unused lands and bar it from commercial use. Official says the city provides more than 10 million square meters of land each year for development. However, a much lower figure than that actually undergoes construction because many developers are stock piling their land. The government says it will also tighten its company audit procedure prior to an auction, in order to prevent further land stocking piling in any form.

 

Editor:Xiong Qu