Developers could lose idle land

After July 1, developers who have left their land idle for two years could lose the land, China's land watchdog said on Thursday.

A revised regulation on idle land released by the Ministry of Land and Resources is meant to curb the country's soaring land hoarding.

A fee, equivalent to 20 percent of the price paid for the land, will be charged if the land has been idle for a year, according to the new regulation.

The deadline for beginning construction might be extended by one year if the land is left idle due to the local government's improper administration in planning or demolition, judicial seizure, military control or protection of historical relics. The extension will be negotiated between the government and developer.

However, if authorities and the developer cannot reach agreement after a year, the local government can rescind the usage rights without compensation, transfer the rights to a new user, or charge the 20-percent fee.

The ministry's statistics show more than 60 percent of land is left undeveloped because of local government's improper administration in planning or demolition of existing structures.

As of May 2010, more than 11,000 hectares of land, equal to the area covered by 13,750 football fields, was left undeveloped across the country, according to the statistics.

Idle land has become a big problem in illegal land use by the real estate industry in China.