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All owners must register their real estate assets - houses, land, forests and the like - under new rules next year. Photo: Imaginechina

China's anti-graft officials could monitor assets of officials using new centralised real estate database

Beijing's new rule on real estate ownership will create national database and is seen as move to regulate opaque investments and fight corruption

The central government yesterday issued new rules that stipulate full disclosure of real estate ownership, in a move to regulate opaque property investments and fight corruption.

The new registration requirement rule for all immovable property takes effect on March 1 next year. It will create a unified national property database, allowing government departments to share information on property ownership.

Government officials believe it will take about three years to establish the unified registration system.

Property ownership data is collected by the authorities but as the system is not integrated, it leaves room for those looking to game the system and hide wealth through property investments.

"All real estate assets - land, water areas as well as houses, forests and the like - will be subject to this set of rules," the announcement said.

The rules apply to first-time registration, changes of ownership as well as property transfers, write-offs and asset freezing, among other things.

The registration database will not be accessible to the general public.

"With the new rule, everyone's asset will be clearly disclosed. It will help [the government] to fight against corruption," said Wang Yukai, a professor at the Chinese Academy of Governance, adding that government officials' assets would be easier to monitor with the new system in place.

Mao Shoulong, a professor of public administration at Renmin University in Beijing, said it was too early to say if the registration system would substantially help in aiding anti-corruption probes.

Mao said he would expect resistance from vested interests and obstacles in implementing the system.

The central government earlier this year established a bureau under the Ministry of Land and Resources, tasking it with rolling out a national system of real estate registration.

Edison Bian, the head of China property research at UOB Kay Hian, said while the new rules were aimed at providing the legal framework for protecting residents' property rights, they were also aimed at establishing a nationwide unified information system for expanding property tax trials.

A pilot programme for property taxes in Shanghai and Chongqing was initiated in 2011, but its expansion has been stalled to focus on generating national property tax legislation.

The National People's Congress is now working on such property tax legislation, which may be put in place by 2016.

Bian said he expected the secondary market to come under selling pressure as a result of the registration requirement.

He also expected limited impact on the primary market, and by extension listed developers, whose earning and sales growth were more dependent on the movements in the primary market.

"The regulations, in our view, could help curb a property price surge next year, especially in regions where supply will be low in the second half as a result of sluggish new starts and slow construction activity this year," Bian said.

This article appeared in the South China Morning Post print edition as: Mainland wants all property registered
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