Government Continues Ban on Sales of Rural Land
The Ministry of Land and Resources and the Ministry of Housing and Urban Rural Development have joined together and issued a circular that is ordering a stop on sales of small property rights housing that is built on rural land without passing through State planning. This circular further reinforced the Central Government’s ban on selling property that was built by villages or farmers on rural land.
Further expectations on the chances that the Central Government will relax the control of sales of these properties came after the party meeting which pledged to allow rural construction land to be traded in a unified urban rural market thus enjoying same price and rights as State owned land. Urban citizens are not allowed to buy rural houses with limited property rights and with the government warning that these kinds of purchases will not have legal protection. However high property prices in cities drove a lot of urban dwellers to purchase such low cost homes.
As Chinese home prices still continue to set new records after four years campaign to cool down the housing market prices, the government is now concern that runaway prices could trigger social unrest. Land in urban areas that are owned by the State can be traded freely, but land in rural areas will be owned by collectives and contracted out to farmers.