State Council to improve secondary land market development

The State Council recently issued a guideline to improve the secondary land market for transfer, rental, and mortgage on the right of construction land use.

According to the guideline, land market development has been hindered by imperfect transaction rules, inconsistent trade information, substandard platforms, and subpar government services and regulations.

To solve these problems and facilitate the circulation of production elements, improvements will be made in a number of aspects.

Once the right of construction land use is transferred, corresponding above-land buildings and other attachments will tag along. With real estate transfer, related procedures will progress according to laws and regulations

Different tax policies for urban and rural land use will be explored to promote land use in an economic and intensive way.

For rental regulations, local authorities in charge of natural resources should provide venues for supply and demand information to be released, formulate an authorized version of rental contracts, and update market information and guidance regularly based on their analysis of the rental cases and market data.

Mortgage mechanism requires improvements as well, in order to protect the legal rights of concerned stakeholders. Thresholds will be lowered for mortgagees, the guideline said.

The operation of the secondary land market will eye further innovation, which will usher in an integrated transaction platform constructed by local authorities, based on existing land transaction institutions or platforms.

In the meantime, the transaction process will consist of four stages: the release of information; reaching agreements; signing contract; and regulating transactions.

Further efforts will be made to improve service systems, which will bring convenient and efficient government services for stakeholders, both online and offline. Agencies will be developed and regulated.

An improved credit system for the secondary land market will come along as well.