Land costs are the sum of the total expenses incurred by enterprises or individuals to acquire land tenure or ownership and to organize land for subsequent development, divided into two main categories, namely, acquisition costs and development costs, as follows:
I. Land acquisition costs
This is the core expenditure for access to land tenure/ownership and is a major component of the cost of land, which varies according to the method of acquisition:
It's through "shows"
Land concessions: core prices paid to government land administrations represent the largest cost of land。
Taxes: taxes paid in proportion to land concessions (usually 3% - 5%, depending on local policy)。
Stamp duty: fees paid on the basis of a transfer of title tax amount to five per 10,000。
Transaction service fees: transaction fees paid to institutions such as the land exchange centre。
Acquisition by transfer (purchase from other enterprises/individuals)
Land transfer price: land value paid to the original land user。
Taxes, stamp duties: in line with the pattern of auctions, paid by the recipient。
Related brokering fees: such as commissions, service fees paid to intermediaries。
Possible replenishment costs: if the original land is idle, planning adjustments, etc., the unused land charge, price differential, etc。
Access through transfers (special-purpose land)
The transfer of land is usually made free of charge or at low cost, provided that the following are covered:
Land expropriations are reimbursed for associated costs (e. G., seedling reimbursement, land attachment compensation)。
(c) reinsertion allowance: for the settlement of peasants or residents on land。
Support for land development: provision for urban infrastructure, etc。
Ii. Land development costs
The common breakdown of the expenses incurred in obtaining land in order to bring it to the level of “three to one” and “five to one” and “seven to one” serviceable status includes:
Site flattening: land clearing, earth digging and backfilling, site crushing。
Infrastructure support costs
Three flats: water, electricity, road + ground flat。
Five equals: an increase in the cost of communications, air and gas, based on three equals。
Seven centigrades: increased heating and drainage costs based on five centigrades。
Related taxes and other expenses
Land use tax: annual fees paid during the land holding period (real estate development enterprises may account for development costs before completion of the project)。
Temporary facilities: expenditure on temporary barriers for land development, temporary office accommodation, etc。
Survey design costs: costs of land surveying, planning design, construction design, etc。
