Urgent Notice on Further Tightening the Management of Land for Real Estate and Consolidating the Achievements of Regulation and Control of the Real Estate Market

Guo Tu Zi Dian Fa [2012] No.87

July 19, 2012

To competent departments of land and resources, and departments of housing and urban-rural development (real estate and urban-rural planning) of all provinces, autonomous regions and municipalities directly under the Central Government,

Since last year, the competent departments of land and resources and departments of housing and urban-rural development (real estate and urban-rural planning) at all levels have seriously implemented the policies for regulation and control of real estate issued by the State Council, completed a lot of work, and played the right role of maintaining the steadiness of the real estate and land market. However, since this May, the sales volume of commercial housing has obviously rallied in some cities, the price of newly-built housing has increased compared to the previous month, and fluctuations have occurred in the land market with high-price land plots in some cities, triggering hot discussions in society. For the purpose of implementing the Central requirements, consolidating the achievements of regulation and control, and practically maintaining the steadiness of the real estate and land market, relevant issues are hereby notified as follows:

I.Further improving awareness and insisting on tightening of the regulation and control of the real estate market
Although the fluctuations occurring in the real estate and land market have not changed the whole structure of the market, the complexity and unsteadiness of the market are increasing, and the regulation and control of the real estate market is still in a crucial period with demanding tasks. Therefore, the competent departments of land and resources and departments of housing and urban-rural development (real estate and urban-rural planning) at all levels shall have clear awareness, insist on tightening the regulation and control, closely cooperate in various work, continuously consolidate the achievements of regulation and control, and forcibly prevent housing prices from rallying.

II.Increasing the supply of housing land and the completion rate of plans
All regions shall set the implementation of housing land supply plans as the major work in the second half of this year and practically do it well, shall do their best to ensure the use of land for affordable housing projects, and shall place the first priority on increasing the completion rate of plans and the effective supply, and further step up the supply of land for common commercial housing. The competent departments of land and resources at provincial level shall, upon receipt of this Notice, separately enact and monthly monitor supervision measures on the basis of the implementation of land using plans for affordable housing projects and common commercial housing in cities and counties. As of July, the Ministry of Land and Resources will provide monthly guidance on the supply of land for affordable housing projects and common commercial housing, publicly notify the worse performance, and assess the performance in meeting targets and taking responsibilities in each province (district and city).

III.Continuing to develop and perfect the land transaction methods and forcibly prevent the disturbance of market expectation caused by high-priced land
The land price is an important index for measuring the status of real estate and the market expectation will be influenced if the land price is extremely high or changes extremely fast. In the second half of this year, all regions shall closely trace the market status, shall practically control the frequency, timing, order and price of granting land, and shall prevent high-priced land for business service or housing from disturbing the market expectation and breaking the steadiness of the market. The competent departments of land and resources at municipal and county level shall further perfect the procedures for professional evaluation and collective decision-making of land prices, shall reasonably determine the starting price and base price, shall fully analyze, research and judge the market status before granting the land, shall timely adjust the bidding modes and formulate the granting programme and the onsite emergency plan if the high-priced land is to be suupplied, and shall adjust the granting programme in a timely manner and grant land by "restricting the price of housing and land", building auxiliary affordable housing or public infrastructure and other methods if the strike price of the land is expected to become the highest total price or single price in history, or the premium rate of the land will exceed 50%, whether for business service housing, residences or commercial and residential complexes. The competent departments of land and resources at provincial level shall pay close attention to land-granting announcements issued by counties and cities, timely control the detailed information on the land plot to be granted, and urge counties and cities to strictly implement the recording system for abnormal transactions of land plots. The competent departments at municipal and county levels shall, within two working days after the letter of confirmation is signed (the letter of acceptance is delivered), fill out the Schedule of Abnormal Transactions of Housing Land through the online system for the monitoring and supervision of transactions in the land market and then report the same separately to the Ministry of Land and Resources and the competent department of land and resources at provincial level. If the departments fail to report it in a timely manner, report the wrong information, or miss or conceal information, the Ministry of Land and Resources shall circulate a notice of punishment concerning them or interview them to investigate their accountability.

IV.Strictly implementing current policies and strengthening the supervision of and the increase in effective housing supply
All regions shall strictly implement policies for the regulation and control of the real estate market and shall not adjust or relax any policy without authorization. If the policy is already relaxed, it shall be immediately corrected. The granted area of housing land shall not exceed the total area of the land, the housing land shall not be granted tied to other things and undeveloped land shall not be granted. The plot ratio of residential land shall not be less than 1. All types of housing construction projects shall start up within one year after the date on which the land is delivered according to the decision document for allotment and the granting contract and shall be completed within three years after the start-up date. The qualifications of bidders shall be examined in a strict manner. The provision that "the price of land granted shall not be paid by bank loans" shall be implemented. The bid deposit for land granting shall not be lower than 20% of the minimum price for granting. After a land granting deal is concluded, the granting contract shall be signed within 10 working days, a down payment of 50% of the granting price shall be made within one month after signing the contract, and the remaining payment shall be made in a timely manner in accordance with the contract within one year. After the grant of the land, no entity or individual has the right to change the planning and construction conditions without authorization.
The competent departments of housing and urban-rural development (real estate and urban-rural planning) at all levels shall set up a fast-track administrative examination and approval channel for construction projects of affordable housing and common commercial housing, improve administrative efficiency, speed up the construction and listing of such projects, and produce the effective supply of affordable housing and common commercial housing as soon as possible. The competent departments of urban-rural planning shall place priority on the handling process for the permit for the planned use of land for construction and the permit for construction project planning. The competent departments of construction shall require construction drawing review institutions to preferentially examine construction drawings and shall place priority on the formalities for acquisition of construction permits. The competent departments of real estate shall place priority on the formalities for issuing the permits for the presale of commercial housing. The development enterprises shall be encouraged and guided to transfer the large and high-end housing under construction to small and medium-sized common commercial housing according to the relevant laws and rules.
All regions shall strictly implement the Measures for the Disposal of Idle Land (Order No.53 of the Ministry of Land and Resources), shall deal with the early warning information on idle land displayed in the system for the monitoring and supervision of transactions in the land market, shall early discover and handle such information, and shall urge the timely formation of effective supply of land granted. Upon the receipt of this Notice, the competent departments of land and resources of cities and counties shall clear up, case by case, the idle land formed due to the failure to start up one year later after the agreed date, shall investigate and recognize idle land in a timely manner and according to the requirements of No. 53 Order and simultaneously confirm it and fill out the reason for the land remaining idle in light of reality in the system for the monitoring and supervision, and shall further strengthen the disposals and simultaneously publish relative information in the China land market division on the official portal website of the Ministry of Land and Resources. With regard to users who have committed acts such as failing to make payment for land granting, leaving land idle, hoarding land and land speculation, developing land in excess of their actual development capacity or failing to fulfil a land use contract, the competent departments of land and resources of counties and cities shall forbid them from participating in land bidding within a certain period of time.

V.Strengthening the monitoring analysis and propaganda, and actively guiding the market
The competent departments of land and resources and departments of housing and urban-rural development (real estate and urban-rural planning) at all levels shall pay close attention to the change of the market, strengthen the joint operations among departments and play the joint role of policies; shall strengthen the analysis and study on the supply of newly-increased land and existing land, the structure of land, the development and utilization, the change of price and other indices, further improve the acuity, pay close attention to transactions in the market, and take measures to cope with new situations and issues in a timely manner; and shall strengthen the initiative propaganda, timely respond to the hot and difficult issues of concern in relation to the public, fully and objectively make all types of monitoring information public, and strive to guide and stabilize the market expectation.