On June 19, 2014, China’s Ministry of Land and Resources held a press conference to explain the new regulation issued on May 22 which will tighten control of the use of land in China.
Analysts expressed concern that changes in the supply of land will affect the housing market. An official from the Ministry of Land and Resources responded that control of the use of land in major cities will not increase the housing market.
Statistics indicate that about 40 percent of urban land in China is used inefficiently. Between 10 and 15 percent of residences in the countryside remain unoccupied. About 5,000 square kilometers of urban and industrial land is under construction, which is equal to about 11 percent of the entire urban land in China that has already been built up. Wang Shouzhi, head of the Policy and Regulation Department in the Ministry of Land and Resources said that there is a need to regulate the overall land use on a macro level in order to prevent some locals from making a quick buck in economic development in their blind pursuit of revenue.
Sources:
Ministry of Land and Resources, June 20, 2014 http://news.mlr.gov.cn/xwdt/jrxw/201406/t20140620_1321128.htm
Xinhua, June 20, 2014
http://news.xinhuanet.com/2014-06/20/c_126646825.htm