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CHINA'S real estate market continues to receive government attention, with more regulations being imposed this year.
In January, the State Council said on its Website that developers would be charged a 20-percent fee if they hoard land plots and leave them idle for more than a year but less than two years after acquiring them.
Land plots left aside for more than two years will be reclaimed by the government, the council, China's Cabinet, said.
The fee, equivalent to 20 percent of the land transaction price, will be levied strictly from then. Previously, the fee was not regarded as obligatory since the government said it might be charged on "principle."
The measures, following a series of macro control policies introduced earlier in a bid to cool the country's real estate market and curb soaring property prices, would help ease the nationwide shortage of land and enable the government to have overall control of the country's land reserves, said Xue Jianxiong, head of research at Shanghai Youwin Real Estate Information Service Co.
Land left untouched for more than two years would be taken back by the government.
Plots that couldn't be legally reclaimed should be dealt with as quickly as possible in appropriate ways such as changing their designated purpose, bartering, assigning temporary uses for them or retaining them for government reserves, according to the council's Website.
The notice also said the Ministry of Land and Resources should join forces with other relevant departments to work out detailed plans regarding land appreciation fees on idle plots.
A tight land supply has long been cited as the major reason for surging housing prices across the country.
The government's determination to implement such tough measures is regarded in the industry as good news for both home buyers and developers plagued by the land shortage.
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