A February 2 report by Yicai, citing publicly released data from China’s Ministry of Finance, shows that revenue from local government transfers of state-owned land-use rights totaled 4.1 trillion yuan in 2025, representing a year-on-year decline of 14.7 percent. This marks the fourth consecutive year of double-digit declines in such revenue since 2022. Compared with the 2021 peak of 8.7 trillion yuan, local land transfer revenue in 2025 fell by approximately 4.6 trillion yuan, a decline of 52.3 percent.
Analyst suggests that shifts in real estate supply and demand, which have contributed to a sluggish property market and financial strain among developers, are the primary drivers of the continued downturn in land-based fiscal revenue. The prolonged adjustment in the real estate sector has significantly reduced local governments’ land transfer income, constraining fiscal resources and increasing debt repayment pressures. China’s current reliance on the “land finance” model is becoming increasingly difficult to sustain.
Source: Central News Agency (Taiwan), February 3, 2026
https://www.cna.com.tw/news/acn/202602030136.aspx