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China Hand Chapter 6 Land and property

  • ID: 2138658
  • Report
  • June 2017
  • Region: China
  • 94 Pages
  • The Economist Intelligence Unit
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China adopts a multi-pronged approach towards its volatile property markets, using a combination of tax and regulatory measures to curb property speculation (or stimulate demand) on the one hand, while expanding the supply of affordable housing on the other. The government's low-cost housing programme is currently on track with its plan to renovate some 15m shantytown homes between 2018 and 2020.

However, the national government faces resistance to its policies from both local governments and individual property buyers. Local officials often refuse to apply national regulations in order to drive revenue from land sales, while purchasers will try to structure transactions in ways that exempt them as much as possible from tax penalties aimed at combating speculation. These problems are so deep-rooted that there is now widespread consensus that an overhaul of China's property tax regime would be a better long-term solution to the real-estate volatility problem than continuing the current ad-hoc polices. This means, in particular, the adoption nationwide of an annual property tax similar to that now being piloted in Shanghai and Chongqing.

China's residential property markets can generally be seen as normal and cyclical. Price fluctuation occurs, but not to the same levels as the "busts" seen in Japan in the 1990s, or the US before the 2007 financial crisis. Following a downturn beginning in 2014, the most recent rebound began in early 2015 after authorities removed some restrictions in an attempt to arrest falling prices. They succeeded only in sparking what has been the sharpest upswing that the Chinese property sector has seen since the housing market was privatised in the late 1990s. Prices in major cities increased by 23.5% among Tier I cities, by 13.9% among Tier II cities and by 11.1% in Tier III cities in 2016 according to China Index Academy, a property research firm based in Beijing that looks at prices across 300 cities , before a number of regulatory tightening measures in the latter half of the year-including mortgage interest rates, tax hikes, and outright home purchase restrictions-finally slowed this growth in the second quarter of 2017. Lower-tier cities, however, continue to work their way through destocking a multi-year glut of oversupply. Housing inventory de-stocking is one of the key parts of supply-side structural reform (SSSR), a policy initiative that will serve as the basis for national economic development over the next five years.
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China Hand Chapter 6 Land and property

Chapter 6: Land and property: China's provinces and their capitals

Chapter 6: Land and property: Section 1: Land administration: Overview

Chapter 6: Land and property: Section 1: Land administration: Land policy

Chapter 6: Land and property: Section 1: Land administration: Allocated versus granted land-use rights

Chapter 6: Land and property: Section 1: Land administration: Legal regime
Rural land grabs continue
Reform efforts inch forward
Recent reforms towards land transfers
Land financing
Legal protection for agricultural land
Restricted and prohibited land-use projects

Chapter 6: Land and property: Section 1: Land administration: Land authorities
Market information systems help boost transparency

Chapter 6: Land and property: Section 2: Acquiring land: Overview

Chapter 6: Land and property: Section 2: Acquiring land: Land-acquisition channels
Acquiring land in development zones
Acquiring rights directly from the government
Bidding for land-use rights
Auction problems
Industrial land grants

Chapter 6: Land and property: Section 2: Acquiring land: Land valuation
Finalising transfers and grants
Rules on expropriation

Chapter 6: Land and property: Section 2: Acquiring land: Centralised registration of rights

Chapter 6: Land and property: Section 2: Acquiring land: Leasing and strata-title purchase

Chapter 6: Land and property: Section 2: Acquiring land: Taxation of land and property
Property tax trials
Other real-estate related taxes

Chapter 6: Land and property: Section 3: Property development: Overview

Chapter 6: Land and property: Section 3: Property development: Domestic property developers

Chapter 6: Land and property: Section 3: Property development: Foreign developers are mainly Asians
Western investors remain dubious

Chapter 6: Land and property: Section 3: Property development: Investment vehicles for foreign investors
The different types of foreign buyers
Foreign investment restrictions relaxed

Chapter 6: Land and property: Section 3: Property development: Planning and construction approvals

Chapter 6: Land and property: Section 3: Property development: Environmental-impact assessments
EIA procedures

Chapter 6: Land and property: Section 3: Property development: Applying for a preliminary review
Housing pre-sales come under fire
Reform of the construction and engineering sectors

Chapter 6: Land and property: Section 3: Property development: Development fees

Chapter 6: Land and property: Section 4: Real-estate supply and demand: Overview
How unaffordable are Chinese home prices?

Chapter 6: Land and property: Section 4: Real-estate supply and demand: Low-cost housing initiatives
Policy banks fund affordable housing programmes

Chapter 6: Land and property: Section 4: Real-estate supply and demand: Regulatory crackdowns
Bank and capital markets credit squeeze
Pre-sale restrictions
Crackdown on land hoarding

Chapter 6: Land and property: Section 4: Real-estate supply and demand: Evolution of China's housing market
Mortgage-market development

Chapter 6: Land and property: Section 4: Real-estate supply and demand: Discount mortgage rates

Chapter 6: Land and property: Section 4: Real-estate supply and demand: Developer Finance Options

Chapter 6: Land and property: Section 4: Real-estate supply and demand: China's wealth management products

Chapter 6: Land and property: Section 4: Real-estate supply and demand: Prototype REITs arrive

Chapter 6: Land and property: Section 4: Real-estate supply and demand: Capital Markets Financing

Chapter 6: Land and property: Section 5: Regional markets: Overview

Chapter 6: Land and property: Section 5: Regional markets: Beijing: Office property

Chapter 6: Land and property: Section 5: Regional markets: Beijing: Residential property

Chapter 6: Land and property: Section 5: Regional markets: Beijing: Industrial property

Chapter 6: Land and property: Section 5: Regional markets: Beijing: Retail property

Chapter 6: Land and property: Section 5: Regional markets: Shanghai: Office property

Chapter 6: Land and property: Section 5: Regional markets: Shanghai: Residential property

Chapter 6: Land and property: Section 5: Regional markets: Shanghai: Industrial property

Chapter 6: Land and property: Section 5: Regional markets: Shanghai: Retail property

Chapter 6: Land and property: Section 5: Regional markets: Guangzhou: Office property

Chapter 6: Land and property: Section 5: Regional markets: Guangzhou: Residential property

Chapter 6: Land and property: Section 5: Regional markets: Guangzhou: Industrial property

Chapter 6: Land and property: Section 5: Regional markets: Guangzhou: Retail property

Chapter 6: Land and property: Section 5: Regional markets: Shenzhen: Office property

Chapter 6: Land and property: Section 5: Regional markets: Shenzhen: Residential property

Chapter 6: Land and property: Section 5: Regional markets: Shenzhen: Retail property

Chapter 6: Land and property: Section 5: Regional markets: Shenzhen: Industrial property

Chapter 6: Land and property: Section 5: Regional markets: Second-tier markets

Chapter 6: Land and property: Section 5: Regional markets: Chengdu

Chapter 6: Land and property: Section 5: Regional markets: Chongqing

Chapter 6: Land and property: Section 5: Regional markets: Dalian

Chapter 6: Land and property: Section 5: Regional markets: Tianjin

Chapter 6: Land and property: Section 5: Regional markets: Wuhan

Appendix: Laws and regulations affecting land and property
Law of the People's Republic of China on Environmental Impact Assessment (2016 Amendment)*
Chapter I General Provisions
Chapter II Appraisal of the Environmental Impacts of Programs
Chapter III Appraisal of the Environmental Impacts of Construction Projects
Chapter IV Legal Liabilities
Chapter V Supplementary Provisions
Editor's note: The following laws and regulations with previous Land and property chapters.
Appendix: Laws and regulations relating to land and property
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