Land transfers less common in H1

Chinese cities reported they transferred less land in the first half of 2012, according to statistics released on Wednesday by China Real Estate Information Corp, a provider of real estate information.

In the first six months, 30 Chinese cities whose real estate markets are monitored had a land supply consisting of 201 million square meters of land for commercial use, 7 percent less than they had in the first half of 2011 and 41 percent less than in the second half of 2011.

Of that, 161 million square meters of land was transferred during the first six months of 2012, a number down 18 percent from the first half of 2011 and 28 percent from the second half of 2011.

Reduced interest rates and policy adjustments are expected to help stimulate the market for land transfers. In the second half of 2012, land transfers may become more common, according to Li Ying, an analyst with China Real Estate Information Corp. Local authorities in China often collect fees on land transfers. As they get less money from that source, they may take various steps to promote the transactions, Li said.

The fourth quarter of 2012 may see a peak in the frequency with which land transfers occur, Li said.