The Shanghai Urban Planning, Land and Resources Administration said the local government will have the right to reclaim plots of land left idle for two years without compensating developers, state media said. Developers will be asked to register with local land bureaus if they have land that is not being built on or if they have not started construction according to schedule. They will also have to register with the authorities if construction has not started one year after acquiring the land. Property developers have often been accused of slowing project construction and limiting supply in a bid to boost up prices. The State Council in 2008 said developers would be charged 20% of the purchase price if the land is not used after one year of acquisition. According to the latest research by E-House (China) Holdings, more than 300 plots of land with a total floor area of more than 40 million square meters that have been registered for the construction of homes have been idle for two years.
Categories