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China bans land deals for villa developments
www.chinaview.cn 2006-06-01 08:35:52

    BEIJING, June 1 -- China yesterday ratcheted up its campaign to cool the booming property market by stopping land sales for villas and other luxury housing projects.

    The government said the move was also designed to help protect the nation's dwindling reserves of farmland.

    Authorities across the nation will screen projects for violations of the new land-use regulations, Wang Shiyuan, vice minister of land and resources, told a news conference in Beijing yesterday.

    Local land resource bodies must give priority to developers of moderately sized and priced apartments - those that average wage earners can afford, Wang said. Local governments must also publish land sales records to ensure transparency, he said.

    In addition, land authorities must tighten after-sale supervision to make sure property developers have built their projects according to contract, the vice minister said.

    However, critics said the effect of the new policy is hard to gauge as key government departments are yet to agree on the definition of a "villa."

    Some developers have in the past successfully dodged the government's restrictive policies on villas by using the word townhouse for their projects, Xinhua news agency said.

    A day before the news conference, China issued an emergency order urging local authorities to exercise more caution in considering applications for developing land for non-agricultural projects.

    China lost more than 122 million hectares of farmland last year to construction projects and natural forces such as erosion.

    The new land-use orders were designed to keep the national economy on a stable growth track, Wang said.

    Land resource authorities will give priority to national key infrastructure programs and projects designed to strengthen the country's weaker economic sectors, he told reporters.

    Hearings must be held before approving projects such as energy, transport, water and military facilities to ensure an equal amount of farmland will be added to make up for the loss, according to the order.

    For other non-agricultural projects that eliminate farmland, developers must also identify other land that can be turned into farm areas.

    Developers of non-agricultural projects on unclaimed mountain sites and other wilderness areas must also obtain approval before building, Wang said.

    And if public disturbances arise over compensation disputes with farmers whose land is appropriated, government officials must set a deadline to ensure timely resolution.

    (Source: Shanghai Daily)

Editor: Yang Li
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