China’s real es­tate land use plunges in 2015

The Pak Banker - - BUSINESS -

BEI­JING: China's sup­ply of state-owned con­struc­tion land de­clined in 2015, with land used for real es­tate de­vel­op­ment drop­ping the most, ac­cord­ing to the Min­istry of Land and Re­sources (MLR). To­tal state-owned con­struc­tion land slumped 12.5 per­cent year on year to 534,000 hectares in 2015, while land used for real es­tate de­vel­op­ment plum­meted 20.9 per­cent to 120,000 hectares.

Land used for in­dus­try, min­ing and ware­houses fell 15.2 per­cent, and that for in­fra­struc­ture dropped 7.1 per­cent, ac­cord­ing to the MLR. The slump in land sup­ply for real es­tate pur­poses came at a time when the coun­try's prop­erty sec­tor is fac­ing a sup­ply glut. In­vest­ment slowed as de­vel­op­ers tried to sell ex­ist­ing homes. To tackle th­ese prob­lems, pol­icy mak­ers in­tro­duced mea­sures in­clud­ing slash­ing the min­i­mum down pay­ments re­quire­ment and re­duc­ing taxes on some prop­erty trans­ac­tions.

Lat­est home price data sug­gested an un­even re­cov­ery in China's hous­ing mar­ket, with prices in first-tier cities such as Shen­zhen and Bei­jing soar­ing while those in some smaller cities are still un­der pres­sure. The MLR data also showed that by the end of 2015, land price for com­mer­cial and res­i­den­tial pur­poses in 105 cities rose 2.7 per­cent and 3.92 per­cent re­spec­tively com­pared with a year ear­lier.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.