Hainan Introduced A New Policy on Land Supply to Continue to Regulate the Real Estate Market
According to the Hainan Daily, the Hainan Provincial Government Executive Meeting approved on January 4, 2018 the Opinions of Hainan Provincial People's Government on Further Strengthening the Macro-control of Land and Improving the Benefit of the Land, covering eight aspects. The above document clearly sets goals for the total amount of land for construction, the amount of arable land, farmland and forestland in the province by 2020, and put forth the basic requirements of "Fixing total amount of land use,diminishing increment, optimizing stock and improving efficiency" and exertingdouble control of the total and intensity of construction land. The document provides to strengthen the management of land and space planning, to strictly control the supply of commercial residential land, and to prohibit the supply of land to projects of excessive capacity, high energy consumption and high pollution.The document provides differential management to the newly-added construction land. Relevant commercial investment agreements are strictly prohibited from arranging the commodity residential land. It is forbidden to supply the commercial residential land together with the land of other industrial projects through bundling or collocation.The document also requires strict market accessand takes the relevant indicators of land investment intensity, output value and tax revenue as the access standards for the supply of construction land. In terms of land use standards, the document mentions that the "flexible term" + "VAM" mode of supply should be implemented and the land market management should be regulated. The document proposes to strictly enforce the net transfer system and reinforce post-supply supervision. In order to implement the joint responsibility, the document proposes that the examination results of the land-use efficiency of cities and counties be taken as the important basis for examination of the leadership in cities and counties. Although Hainan started a series of measures to control the property market since last year, the introduction of the most stringent land management policy in the history is likely to be related to the central government's criticism of the devastating ecology of Hainan's real estate development in December last year.