Shenzhen has been granted the right to convert some agricultural land into construction land once again, which is expected to dispel the myth that housing prices have been rising.
Xinhua News Agency on October 11, news, according to the general office of the central committee of the communist party of China and the State Council general office recently released by the construction of socialism with Chinese characteristics in shenzhen first demonstration zone comprehensive reform pilot implementation plan (2020-2025) “(hereinafter referred to as the” scheme “) is proposed to support the shenzhen deepen the exploration in the land management system, the State Council may authorize the permanent agricultural land into construction land rather than basic farmland entrusted examination and approval matters in the shenzhen municipal government for approval.
The plan also supports the promotion of mixed use of land for secondary and tertiary industries on the premise of meeting the requirements of land space planning.We will support efforts to put existing industrial land to good use, and explore ways to solve problems related to planning adjustments, land supply, revenue distribution, and land left over from history.We will explore a market-based mechanism for using existing construction land for development and construction, and improve the mechanism for recovering the right to the use of idle land.We will deepen reform of the rural land system in the Shenzhen-Shantou Special Cooperation Zone and other regions.We will support the development of a natural resource asset trading market based on public resource trading platforms, and improve the land market service and supervision system that links the primary and secondary markets.Pilot implementation of the land secondary market notice registration transfer system.
In March this year, the State Council issued a decision on the right to authorize and authorize land use, saying that it will further deepen the reform of “delegating control and services”, reform the land management system and give provincial-level people’s governments more decision-making power over land use on the premise of strictly protecting cultivated land and conserving and intensively using land.The Decision explicitly authorizes the conversion of agricultural land other than permanent basic farmland, which may be authorized by the State Council, to construction land for approval by the people’s governments of all provinces, autonomous regions and municipalities directly under the Central Government.
Now, Shenzhen, as a sub-provincial city, has been given the same autonomy.Li Yujia, chief researcher at the Housing Policy Research Center of Guangdong Province, told China Business News that the need for such a policy is actually urgent in Shenzhen.Previously, the state had some concerns about the conversion of agricultural land to construction land, especially residential land, and worried about the hollowing out of the real economy and the realty.Therefore, the examination and approval right of agricultural land to construction land is controlled very strictly.However, as for Shenzhen, with the adjustment of industrial structure, the tertiary industry and high-tech modern service industry have occupied the leading position, but the land structure is still in the state of mainly industrial land.Therefore, under the background of industrial transformation, Shenzhen must readjust its spatial structure.
According to Li yujia, planning land use and land use control were the two “imperial swords” in this adjustment.Therefore, the adjustment to Shenzhen, is the use of land rights to increase, significant.At the same time, it is also an inevitable result of promoting the free circulation of elements in the marketization, because local governments have a clearer idea of how land should be used and how land elements should be maximized in value.
Data show that shenzhen’s 1997.47 square kilometers of land contains more than 13.44 million permanent residents, but the residential land in Shenzhen accounts for less than 23% of the city’s total construction land area, which is lower than the lower limit of 25% ~ 40% in relevant national standards.
Housing prices in Shenzhen have risen rapidly over the past decade, largely because of a belief that the city’s land supply was insufficient to meet the housing needs of its huge population.According to zhongzhi Research Institute, the average transaction price of commercial residential buildings in Shenzhen was 55,821 yuan per square meter in 2019, more than 2.3 times that of 23,973 yuan per square meter in 2014.
Xu Xiaole, chief market analyst at The Shell Research Institute, said the shortage of land supply in Shenzhen was largely due to policy restrictions, in addition to geographical conditions.A large number of small property houses, farmers’ houses, urban villages, factory dormitories do not have the conditions for listing and circulation, unable to form an effective housing supply.These problems remain unresolved for a long time under the current institutional framework.However, in the context of the annual influx of 500,000 people, only relying on a small number of commercial housing, the contradiction between supply and demand is increasingly acute.
“The implementation of the plan marks a shaking of the foundation for investment and speculation in Shenzhen, and is expected to shatter the myth that housing prices in Shenzhen have been rising.””The plan authorizes the Shenzhen municipal government to approve the conversion of agricultural land other than permanent basic farmland into construction land, and gives special support to the pilot demonstration zones to deal with farmers’ houses and urban villages, helping Shenzhen solve this long-standing historical problem,” Xu said.”If the five million or so small property units can enter the market in an orderly manner, it will play a major positive role in the smooth and healthy operation of shenzhen’s real estate market.”
For the scheme optimization increment and stock land circulation utilization of land, Xu Xiaole thinks, on the one hand, the exploration of the development and construction by using the inventory construction land market mechanism, improve the mechanism of the idle land use rights to recover, revitalize the stock of industrial land, according to the actual needs of the industrial structure transformation, make more efficient use of the land space.Some idle, inefficient industrial plant and warehouse will be able to be converted to residential use, so that the replacement of labor and business leasing more smoothly.On the other hand, we will deepen the reform of the rural land system in the Shenzhen-Shantou Special Cooperation Zone and other regions, continue to expand the cooperative utilization of resources in the urban circle, and obtain available resources from outside the urban circle, which will benefit the surrounding cities.