Shanghai issues rules to control land use
By Xiao Liang (China Daily)
Updated: 2004-06-24 09:05

The Shanghai government has vowed to keep closer watch over local land use by launching two regulations that are expected to help better supervise the market.

City government spokeswoman Jiao Yang yesterday disclosed that the regulations include one that aims to tighten control over the scale of land use in local construction projects. The other will establish a well-functioning land reserve system.

"Such regulations are part of the government's measures to strengthen supervision of land use," said Jiao.

"Our goal is to set up a legal, standardized and transparent land market, as land is Shanghai's most precious resource."

According to the first regulation, still in trial implementation, local authorities will conduct stricter examinations before giving approval to fixed-asset construction projects.

The examination will extend throughout the assessment process handled by related government bodies, and cover project proposal review, project position finalization, initial checking on project land use as well as feasibility report inspection, according to Jiao.

"Such a regulation is in line with the State policy to put the scale of land use under better control," said Shen Yongfeng, a lawyer with Shanghai J&W Law Firm, who has been tracking the local land market.

"The purpose, as I observe, is to use the limited land resources in a more economical way," said Shen.

Another related regulation, the Shanghai Land Reserve Rule, to be in place by August, is meanwhile expected to better oversee the land market, according to Jiao.

"The government should establish a land reserve mechanism that will balance the short-term and long-term land demand," said Jiao.

Under the mechanism, the city's governments at all levels will entrust special land reserve organizations, either set up by governments on a non-profit basis or specially sanctioned by local authorities, to handle related matters, ranging from the initial reservation of land to land delivery according to approved land supply plans.

"The rule will enable governments to have stronger ability to control the use of land resources, which will lead to a market in better order," said Shen of Shanghai J&W.

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