Beijing tightens land use rights
By AGNES CHEUNG
STATE enterprises are to be allocated land for development only if their economic performance is up to scratch, under new policies to protect farmland.
And other firms will have to acquire land without help from local governments in a bid to curb overheating in the real estate sector.
The powers of local governments to grant land-use rights are being cut by Beijing, with the central Government set to introduce a package of legal measures over the next two years to tighten the market's development.
Beijing wants more realty development for the poverty-stricken western region, while controlling it in the affluent coastal regions.
Land planning in the hinterland is to be brought into line with that in the developed coastal regions, according to the semi-official Hong Kong China News Agency.
The policy change, aimed at balancing the country's development, is expected to be discussed and endorsed at the fifth plenum of the Communist Party's Central Committee later this year.
Under the new regulations, all existing and newly formed enterprises have to acquire land for themselves to stem serious losses in land assets.
Local governments can no longer grant land for enterprises at free will or without regard for their abilities.
Effective and efficient state firms will not be allowed to buy land from the state, while those with only moderate performances will have to acquire land for working areas and dormitories separately from the authorities.
Inefficient state companies can only rent land for use, while land owned by collectively-run enterprises will be allowed to enter the market for transaction directly, the news agency said.
Meanwhile, Deputy Minister of Construction Tan Qinglian revealed that new regulations on real estate were being formulated.
They will govern the administration of urban real estate development, real estate prices, the registration of property rights, the supervision of real estate operations and intermediary services, the People's Daily yesterday quoted Mr Tan as saying.
They will give more muscle to the law on urban real estate administration which was enacted last year.
A State Council circular has also been issued, controlling the development of luxury buildings to free land for farm and ordinary residential use.