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ARTICLE · 19 OCTOBER 2010

China Bans Developers with Idle Land from Buying More Land

Mayer Brown
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On 27 September 2010, the Ministry of Land and Resources of China, together with the Ministry of Housing and Urban-Rural Development of China, said in a joint circular (Circular) that developers failing to develop land within a year after the construction commencement date set out in land use right grant contracts will be banned from bidding for more land.

ChinaReal Estate and Construction
Billy Ho
Billy Ho
Andy Yeo
Andy Yeo
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Originally published 19 October 2010

Keywords: China, Ministry of Land, land use, developers, idle land

On 27 September 2010, the Ministry of Land and Resources of China, together with the Ministry of Housing and Urban-Rural Development of China, said in a joint circular (Circular) that developers failing to develop land within a year after the construction commencement date set out in land use right grant contracts will be banned from bidding for more land. The ban will also be extended to cover the majority shareholders of the guilty developers.

The Circular also reiterated that local governments must allocate at least 70 percent of land for public bidding for the development of subsidised public apartments and small and medium-sized apartments. Those cities that fail to do so must not offer land for bigger and more luxurious housing.

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