There's a phenomenon in China that some developers hoard land instead of developing it. Some even transfer their holdings to other developers. Last week, a report came out that for one Beijing project of the Hong Kong Yingke Group, in three years, only the groundwork was built. Yet new prime lot developers are on the rise.

Land hoarding is a serious problem in China. Many developers prefer to hold on, hoping to turn a profit.

Liu Hongyu, Director of Tsinghua Real Estate Research Inst. said "I think a good way is to ask the developers to finish the projects within the time ordered. Obviously, if I have a project of 3 million square meters, when to start it is not an important issue. The important thing is when to complete it."

Legislation by the Ministry of Land and Resources allows the government to take back land if it is not used within two years of purchase. Market experts say it should clearly state the completion time so it can supervise developers.

Some law experts also suggest the government levy taxes on idle land.

Qin Bing, Real Estate Lawyer said "For example, developers have to pay taxes three months after buying land rights. If the land cost 200 million yuan, calculated at 2 percent of tax a year, the developers have to pay 4 million yuan for the second year. So speculative behaviors should be restrained by law."

Experts also suggest the appropriate departments set up a supervision-restriction mechanism and management rules, with clearly stated penalties.