Top Biz News

7-year-old base land price to be updated

By Xu Fan (China Daily)
Updated: 2010-02-05 12:05

Beijing's base land price, which has remained steady for seven years despite soaring housing prices, will face its first adjustment since 2002 according to the local government.

The base land price is an average land price made according to its location. It is used as a standard price for land lease, sales or mortgage.

The adjustment announcement was made in an open hearing on Wednesday to gather feedback from 20 delegates of local government, enterprises, institutions and the general public.

It said the capital's land would be divided into 12 levels, two more than in the previous system started in 2002. The levels classify 212 commercial areas, 209 office areas, 211 residential areas and 181 industrial areas.

Some experts at the hearing estimated the new base land price in some areas might be raised by between 1.7 and two times the current amount, according to Beijing Youth Daily.

Zeng Zanrong, deputy director general of Beijing municipal bureau of land and resources, said the price adjustment had no direct correlation with housing prices, but might affect property tax if it was levied in the future, Beijing Daily wrote yesterday.

Under the current system, the base land price of the first level is 9,750 yuan per sq m for commercial use, followed by 8,000 yuan for office and industry use and 7,000 yuan for residential use. In the former system, Dongcheng, Xicheng, Chongwen, Xuanwu, Haidian and Chaoyang districts were placed in the first to sixth levels. Fengtai and Shijingshan districts were set as third to ninth levels. The other outskirt districts were grouped into the sixth to 10th levels.

The 10th level, which refers to the cheapest locations, has two locations and prices: 140 yuan per sq m and 90 yuan per sq m. Despite the suggested price, some residential apartments in remote suburbs are on the market for 6,000 yuan per sq m.