China cracks down land hoarding

In the latest government move to curb inflation in the real estate sector, and push up housing supplies, authorities are closing in on real estate developers guilty of hoarding land for profit.

Authorities are closing in on real estate developers guilty of hoarding land for profit.

Developers who buy land and leave it lying idle for more than a year will be subject to a charge amounting to 20 percent of the purchase price. And if developers still do nothing after two years, ownership of that land will revert to local governments.

Local authorities must report to the central government by the end of June on what progress they have made in stamping out the practice of hoarding land.

Chinese authorities have promised to use land more efficiently, to better sustain economic growth. They've also pledged to set aside at least 120 million hectares of land for farming, in order to feed the entire population.