Land supply tightened to curb prices

China's Ministry of Land and Resources has announced it will tighten real estate land supply this year in a bid to reign in skyrocketing prices. Real estate sales have been frozen until regions outline their policy-supported housing plans.

China's Ministry of Land and Resources said it will launch a five-month nationwide crack down on irregularities in land supply.

It added that land used for policy-supported houses, shanty town renovations and budget commercial residential properties should account for at least 70 percent of this year's total land supply.

Yun Xiaosu, Vice Minister, Ministry of Land & Resources, said, "During the second half of last year, housing prices in some Chinese cities accelerated too quickly. Our main task is to improve land auction systems and implement measures to cool housing prices. We should also actively adjust our land supply policies to meet the changing needs of China's property sector."

Dou Jingli, Dept. of Land Admin, Ministry of Land & Resources, said, "Our meeting this time has concluded that all regions have to map out their policy-supported housing plans first. After that, they will be allowed to negotiate land sales."

The Ministry of Land and Resources will devise the country's annual land requirement for policy-supported housing programs next month. All regions have been banned from selling land, until their subsidized housing plans are finalized.

The ministry added that the country will build 3 million affordable apartments and renovate 2.8 million shanty town houses this year.