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MLR: “two-way control” on land supply to limit housing & land speculation
2017-01-13 14:42

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Besides limiting housing loans and purchases, what measures will be taken regarding to land supply? Residential lands shall not be used for speculative investment, and classified “two-way adjustment & control” system should be built, Jiang Daming, Minister of Land and Resource (MLR), stressed in the National Land & Resource Work Conference on Jan. 12.
Residential lands not for speculative investment
On that day, Jiang came straight to the point that departments of each level under the MLR should practically reinforce the awareness of unexpected development and responsibilities, insist the principle of “houses built to be inhabited, not for speculation” to guide the work, and more actively and self-consciously bear the responsibilities to adjust and control the land utilization for real estate.
Excessive investment and speculation in the real estate sector will cause unbalance of real economy and this industry, expand real estate bubbles, and arouse financial risks and hidden dangers, which become the prominent problems faced by economic development now, he pointed out.
“It is clear that residential lands are used to guarantee citizens’ inhabitation, not for speculation; we should correspondingly study the policy to deal with short-term fluctuation of real estate market and restrict its bubbles; even for long-term development’s sake, we should enhance investigation and research, and create basic land system and long-effect mechanism meeting with national condition and market rules to promote the stable and sound development of real estate market”, Jiang said.
The MLR shall make great efforts to push supply side structural reform so as to gain substantial progress in 2017, and especially referring to real estate sector, classified adjustment & control system and different policies for different regions based on actual situation should be insisted to optimize land supply structure, support cities with huge real estate inventory to rationally and legally adjust the utilization of undeveloped real estate lands, and promote social projects related to people’s livelihood or industrial projects supported by China, Jiang indicated.
“Two-way adjustment & control” for land market
The major decision of the central government to adjust and control the real estate market should be firmly implemented in 2017 to speed up the pace for studying and establishing basic land system and long-effect mechanism meeting with national condition and market rules, and promote the stable and sound development of real estate market, Jiang highlighted. Building the classified adjustment & control system should be put in the first place to carry out “two-way adjustment & control” on lands.
“Policies should be different for affordable and commercial housing projects; we should make every effort to support the land utilization for the former, and issue different policies for the latter according to different situations and supply & demand trend; classified management system for residential land supply should also be built”, Jiang expressed.
He also pointed out lands should be rationally offered to cities with huge pressure from soaring housing price, with land structure adjusted and residential land utilization proportion raised. In terms of the third and fourth tier cities with big de-stock pressure, residential lands should be reduced or even temporarily suspended.
He proposed to reinforce the two-way regulation for both supply and demand. It means to intensify national land resource planning, strengthen the control on land utilization planning, delimit the urban development, and push megacities with over huge population and over high housing price to accelerate releasing some urban functions. Land reserve system should be improved, 3-yr rolling supply plan for residential lands should be formulated, and social expectation should be rationally guided. Efforts should also be made to work out better land allocation rule, and implement “person-land-linked policies”. Meanwhile, we should also rationally determine land utilization proportion ratio and scales for policy-based residential houses, such as publically-rental houses, common-property-right houses and others, to enhance the “accurate-land-supply” capability.
Jiang also proposed to explore diversified land supply system for real estate market, for example, enterprises and governmental organizations meeting the requirements, which have legally gained the right to transfer state-owned construction lands to be used for residential housing development, are encouraged to take advantage of self-owned lands to construct policy-based residential houses. 

Translated by Jelly
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