On the latest day of the news of 25 april in beijing (journalist an zheng), the department of planning and natural resources of hangzhou city issued a circular on the implementation of the regulations for temporary re-use of houses in hangzhou city on the implementation of the requirements for the allocation of land, and on the further improvement of the management of land for paid use。
Hangzhou by-laws for temporary change of use of houses: temporary status for “old-age replacement”
This rule opens the way for temporary conversion of the stock of houses (excluding dwellings) with legal sources of rights on state-owned land. The policy is clear and allows office buildings, factories, etc. To apply for temporary conversions for the development of state-supported industries, or for the development of short boards, such as old-age pensions, long-term rental apartments, and the creation of creative gardens, without prejudice to planning and security conditions. The first application may be made for a maximum period of five years and for a period of not more than two years at a time。
In terms of revenue reconciliation, the rules make it clear that the annual return on land is levied by 70 per cent of the difference in the base ground price before and after the purpose change. At the same time, annual land returns are exempt from payment in cases where the change of use is consistent with the " directory of land transfers " , as well as with the incentive business of small people (one place, 300 m2) and old-age care。
The vice-president of the shanghai institute for emigrant real estates has made a drastic leap forward: “hhangzhou's policy, through a combination of positive lists, negative lists and annual land gains reconciliation mechanisms, provides an institutionalized avenue for the legal re-use of the inventory, while safeguarding the seriousness of planning. This is of substantial benefit to commercial, office and old plant owners.”
Particular attention is drawn to the fact that approved temporary conversions do not serve as a basis for real estate registration, and in the future compensation will be calculated on the basis of the original use of the house if collected by the government. It was stressed that this provision eliminated the expectation that the owner would use temporary conversion to obtain higher compensation and ensured fairness in the collection of compensation。
Circular on the implementation of the requirements of the directory of transferd land: strict control of transfers and encouragement of paid use
The circular imposes double tightening on the subject and the use of the land to be allocated, specifying that the project must meet both the purpose and the requirements of the subject as specified in the directory of places to be allocated to the land. It is noteworthy that eligible private non-enterprise units can still be the subject of land transfers。
Tighter leaps point out that the central orientation of notifications is to tighten transfers and encourage payment. This is a sign of a gradual narrowing of the distribution of funds, but it also maintains support for the participation of social forces in non-profit enterprise building。
The supply-side model of the neighbourhood centres has led to major adjustments. In principle, neighbourhood centres will be offered on a reimbursable basis to encourage the participation of social capital and to determine the proportion of functions prior to concessions. All functions may be allocated as a whole only if they meet the requirements of the allocation catalogue and the subject of the land is the establishment or town (street)。
“this shift means that neighbourhood centres move from administrative to market allocation and dominance. The opportunity lies in the availability of full property rights and the right to hybrid use, and the challenge is that land costs may rise.”
The land for demolition and resettlement is innovative in clarifying the agreed route of concessions, which must not be less than 70 per cent of the “policy housing” in the base land price. In future listings, the difference in the price of the place to be converted to a merchandise house is paid, but the settlement price remains unchanged. The sharp leap indicates that it guarantees both the efficiency of the settlement and the prevention of arbitrage with the prices of the commodity market, ensuring that the vested interests of the resettled population are not affected。
Certain provisions for the further improvement of the management of reimbursable use of land: detailed rules for replenishment
The provision harmonizes the criteria for the replenishment of credits when the nature of the land is converted. The formula is: the amount of the replenishment = the market price for the new use at the time of the concession - the market price for the original use at the time of the concession. The assessment period is strictly determined as the time point for the receipt of a request for a supplemental payment and the evaluation report is valid for only two months。
The rigorous leap forward analysis states: “this provision strengthens the timeliness and, while avoiding the use of historically low price arbitrage by enterprises, increases the time pressure on the replenishment project.”
The policy establishes a slotting mechanism for cases in which the construction area is actually measured beyond the planning permit: payment of the floor price at the time of the land concession within the reasonable margin of error; and payment of the double amount of the current assessed price for those areas beyond the reasonable margin of error。
The use of underground space is further expanded, and underground space for commercial, commercial, storage and other operational purposes must be subject to the use of land on a reimbursable basis and must be registered as immovable property as a single title, without separation of assignment, registration or collateral. It was pointed out that while this provision helped to prevent speculation in underground space, it could also weaken the willingness of developers to invest in large underground compounds。
In addition, state-owned land is leased for up to 20 years, and rents are linked to lpr dynamics over five years. Payment periods for reimbursable use projects may be extended under certain conditions to one year。
“in general, this policy, which clarifies the rules, closes the loopholes and brings stock together, is an important indication of the evolution of land market management systems.”
