Land restriction affects housing prices?

Ministry of Natural Resources: Land control has no direct relationship with rising housing prices

　　Is the supply of real estate land a core factor that determines the rise and fall of urban housing prices?

　　In the “Response to Recommendation No. 1785 of the Fourth Session of the 13th National People’s Congress” (hereinafter referred to as the “Response”) published on the 5th, the Ministry of Natural Resources stated that the rise in urban housing prices is caused by a variety of factors, except for In addition to the supply of residential land, it is also related to distribution methods, credit policies, and the construction of affordable housing.

The third national land survey showed that my country's per capita residential land area has exceeded 40 square meters, which is already at a relatively high level in the world. This shows that the control of land is not directly related to rising housing prices.

　　The recommendation No. 1785 of the Fourth Session of the 13th National People’s Congress mentioned here refers to the “Regarding the Cancellation of Unreasonable Urban Per Capita Construction Land Use” submitted by Cai Jiming, a representative of the National People’s Congress and Director of the Political Economy Research Center of Tsinghua University during the National People’s Congress and the National People’s Congress in 2021. Recommendations for limitations.

Source: Ministry of Natural Resources

　　Cai Jiming believes that it is a universal law that urban construction land grows faster than population growth. my country’s current per capita urban construction land standard lacks scientific basis. Long-term planned allocation and administrative restrictions on land resources have led to a low level of overall land use, which has curbed it. Urbanization process.

　　Cai Jiming stated that my country’s current urban land use growth elasticity coefficient does not exceed 1.12, urban per capita construction land does not exceed 100 square meters, and there is no scientific basis for restrictions such as no more urban construction land in super-large cities.

　　He believes that these unreasonable restrictions have led to the distortion and inefficient allocation of construction land between urban and rural areas, between regions, between large, medium and small cities, and between housing and industry and commerce. This has led to an extremely high ratio of urban housing prices to income and restrained urban residents. Consumption.

　　Regarding these suggestions, the Ministry of Natural Resources stated in its "Reply" that under the tight constraints of resources and environment, especially the changes in the international situation after the new crown pneumonia epidemic, my country needs to strictly control the scale of construction land and limit the occupation of ecological and agricultural space. Developed countries in Europe and the United States with a small population and a large amount of land adopt a low-density, long-distance, and motorized urban expansion model, which will inevitably require tight control over per capita urban construction land.

　　According to the "Reply", studies have shown that for a populous country like China, loosening the tight control of per capita construction land will lead to expansion of construction land and increase the amount of carbon dioxide emissions, which is not conducive to my country's fulfillment of its international commitment to carbon peak and carbon neutrality.

　　"Answer" believes that my country's strict control of per capita construction land has not curbed the development of urbanization.

According to the seventh census, the urbanization level of the permanent population in my country has reached 64%.

The results of the third national land survey show that my country's urban construction land has expanded rapidly in the past 10 years, and the per capita urban construction land has increased significantly, especially in central cities and urban agglomerations, where the expansion of urban construction land has accelerated significantly.

　　On August 26 this year, the "Communiqué on Major Data of the Third National Land Survey" was released to the public. The results of the "three adjustments" showed that the total construction land in the country was 613 million mu, an increase of 128 million mu or 26.5% from the time of the "second adjustment". In the same period, the GDP increased by 109.4%, and the urbanization rate of the permanent population increased from 48.34% to 62.71%.

　　At a press conference on August 26, Wang Guanghua, Vice Minister of Natural Resources, said that overall, the increase in construction land is in line with the overall land demand for economic and social development, but the problem of insufficient construction land conservation and intensiveness is still prominent.

Judging from the "three adjustments" data, the total scale of urban land has reached 155 million mu, and there are a lot of inefficient and idle land in some places.

The total scale of village land is 329 million mu, the total amount is relatively large, and the layout is unreasonable.

The potential of urban and rural construction land to be fully utilized is great.

　　The "Reply" also revealed that the relevant standards will be formulated and revised in the future.

"Based on the data from the third national land survey and the seventh census, in accordance with the new requirements of building a new development pattern and the new stage of spatial development, the standards for per capita cities, per capita towns and other construction land will be revised in a timely manner."

　　Regarding the issue of land supply for real estate, the "Answer" stated that the management of the supply of residential land will be strengthened.

Establish a real estate and land linkage mechanism to guide cities with net population inflows and prominent housing supply-demand contradictions to increase the supply of residential land, improve the relationship between housing supply and demand, and promote the steady and healthy development of the real estate market.

　　At the beginning of this year, the Ministry of Natural Resources revealed that the supply of residential land in key cities in 2020 will exceed the average completed transaction volume in the past five years, and most of them will increase significantly from 2019.

Key cities will continue to increase the supply of residential land in 2021, and the supply of residential land should be increased steadily and reasonably, and the guarantee of the scale of land supply shall be the first requirement.

　　Author: Liu Zhanchao