China's Strategic Land Reclamation: A Boost for the Property Market

China is deploying local government special bond funds to reclaim idle land to stimulate its property market. The focus is on residential and commercial lands previously undeveloped. These lands will not be available for development within the same year, maintaining strict control over the scale of development.

In a strategic move to invigorate its ailing property market, China plans to channel funds from local government special bonds for land reclamation efforts. This initiative was confirmed by the Ministry of Natural Resources on Monday.

The ministry emphasizes prioritizing the reclamation of residential and commercial lands that have remained undeveloped, either due to lack of interest or financial capability from enterprises. This includes land that was previously supplied but never developed.

While reclaimed land will generally not be up for real estate development within the same year, exceptions with strict scale controls may be considered if development is deemed necessary.

(With inputs from agencies.)