Beijing tightens land-sale regulations

Beijing released new regulations tightening land-sale regulations for property developers in an attempt to release inflationary pressure in the domestic property market, the Wall Street Journal reported. The new rules include a mandated 50% minimum down payment on land purchases from the government – a historical first – and require developers to pay off land purchases from the government within one year of closing, with one-year extensions for "special projects." If they do not pay off the purchase in full, developers will be blocked from new purchases. Local governments are also required to report the proceeds of land sales in their budgets, and specifically forbidden from granting discounts or payment moratoriums to developers. Property developer shares declined on the Shanghai Stock Exchange on Friday following the announcement.