Ningbo Aims to Leverage on Existing Stock and Pushes for Supply-side Reform
- Details
- Category: Ningbo News
- Published: Wednesday, 27 January 2016 08:34
As industrialization and urbanization surge ahead, Ningbo has approached the limit for land development in recent years. On the other hand, the city is plagued by imbalanced use of land, evidenced by disorderly distribution of land, inefficient land use and failure to put existing land into good use. What’s more, many invaluable land resources are occupied by zombie businesses, thereby hampering economic development. A circular, issued by Ningbo Land Resources, is designed to make good use of unused land for the first time. The document comes at a time when China is aggressively pushing for the supply-side reform, advancing low-carbon life, production and urban management. The implementation of the document also works to enable wider construction spaces, upgrade land use structure and resources allocation, and raise the quality and performance of the economy.
Companies are encouraged to put land into full use. They are allowed to expand their land without changing how the piece of land should be used. To provide more parking spaces, companies are also encouraged to build a parking lot on an industrial land. Businesses will be rewarded if they have raised the floor area of their premises more than 40%. An upgraded piece of land is permitted to be leased to other organizations in accordance with relevant laws and regulations.
Leased land is allowed to serve different purposes and uses but for state-owned industrial land. The leasing price is benchmarked against a standard. Land that was previously allocated by the government will see land revenue of 2.5% of the worth of the land.
Inefficient land use must be changed. Land without contracts can be transferred in line with certain procedures. Land that needs redevelopment will be exempt from infrastructure fees except real estate properties.
Over 60% of land is occupied in recent five years. Accelerate initial stage development. Land that has been approved but yet to be used will be put into other uses. Regulators responsible for delayed land uses should push forward the project in due course. We will exercise a strict reviewing process for projects awaiting approval.
We have put in place innovative policies. First, land that does not meet what is required for transfer is also allowed to do so. The second is the construction that has been under way should start in less than one-third of the total land area. Development and construction of a full year's suspension of state-owned construction land, unable to sell the land in accordance with the original contract or agreement can reclaim land use rights. Third, guidance is provided for undeveloped properties to change their uses. The policy is designed to buoy up the development of emerging industries, elderly care, cultural sector, the sporting industry and so on.
How much land is used is included in the appraisal of company performance. Standard is set for what low efficiency company should be like. A mechanism will be put in place to phase out inefficient stock. A differentiated land use tax policy will be followed. We will accelerate the development of business credit system and make default in construction and land idleness part of the system so that companies will have to follow the rule.
We will make full use of land resource integrated oversight platform and a monitoring system to exercise dynamic oversight over existing stock. And this will also be included in the appraisal process for governments at different levels
