Hainan authorities are said to have held talks with 12 property developers, including units of well-known names such as China Resources Land, CITI Pacific, Shandong Luneng Property and COSCO, over the issue of hoarding of land parcels, Tencent’s qq.com portal reported Monday.
The developers are alleged to have built a combined land bank of 44,742 mu (2,983 hectares), which is equal to 32 percent of the idle land plots in Hainan. Some of the plots have been left idle for up to 22 years.
Sources were quoted as saying that it is the first time a large-scale crackdown has been ordered by the authorities, as it was mostly the small companies there were targeted in the past.
Ultimatums have now been issued to the developers, according to the report. If the sites are not developed according to the contract of land sale, the guarantee deposit will be forfeited and the land use rights will be taken back by the administration.
Developers which have over 500 mu of idled plots and have not acted on them by end of July will be banned from future land auctions.
According to the Hainan provincial government, there was 286,800 mu of idled land as of September last year. In 2013, real estate investment in the province totaled 135.66 billion yuan (US$21.9 billion), up 32.9 percent year on year. Property investment is said to have made up for 49.8 percent of all the investment in the province during the year.
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