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China to further tighten regulation on land leasing
(eastday.com)
Updated: 2004-02-19 16:08

China will further tighten its regulation on land leasing this year to avoid misuse of farm land, Ministry of Land and Resources said.

"The government will focus on eradicating misuse of farmland to benefit farmers," said Sun Wensheng, minister of land and resources.

To safeguard the farmers' interests, China is to adopt a hearing system to better manage its land resources, starting on May 1.

Local governments will be required to have hearings on variations of benchmark land prices and the land requisition plans.

Dai Qin, a DTZ Debenham Tie Leung analyst, said the hearing procedure will surely increase the efficiency and transparency of the land and resources departments nationwide.

Meanwhile, the land authority will carry on investigation in illegal industrial park development nationwide. Land of canceled industrial parks will be returned to farmers.

"The restriction on industrial park development will help Shanghai compete with other areas in the region in attracting foreign investors," Dai said.

"The land leasing price in Shanghai is likely to increase in the near future because of the land-control policies and following limited supply."

Currently, Shanghai has around 200 industrial parks, including 11 authorized by the city government. In general, local parks are better regulated, Dai said.

In the fourth quarter of last year, the average 50-year leasing price of Shanghai's 11 premier industrial zones remained almost unchanged at US$62 per square meter.

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