The first sign that the government is not going to allow large tracts of land to lie undeveloped as developers build up land banks for a further boom to come came when the Ministry of Land and Resources (MLR) publicized 18 such plots across 10 provinces on its website.
Liao Yonglin, director of the Department of Land Use and Administration of the MLR, said, "The publication of these land plots is aimed to urge the local governments to execute the punishment strictly, and at the same time, warn the real estate developers to buy land lots rationally." Which is a very strong warning.
The ministry announced at the briefing that developers who buy plots and leave them undeveloped for more than one year but less than two will face fines of up to 20% of the price the land sold for.
Alibaba.com reported that tracts of land left undeveloped for more than two years will be repossessed by the government, without compensation being made to the developer. Undoubtedly developers will be looking for excuses but the government seems very serious about this which may change the property dealing landscape somewhat.