(Yicai) March 9 -- Local governments in China have set out more plans to buy unused land this year using special purpose bonds, with analysts saying that provinces and cities nationwide will push on with efforts to trim real estate stocks, bolster their property markets, and rekindle demand for land and housing.

Local government acquisitions of idle land parcels have become a key part of efforts to reduce housing inventories in the country. In October 2024, the finance ministry announced that regional authorities would be supported in using special purpose bonds for such purposes.

As of the end of last month, 28 province and cities had issued plans to sell more than CNY770 billion (USD111.6 billion) of these bonds, with over CNY335 billion already sold, according to incomplete statistics from think tank China Index Academy.

Last year, 26 provinces and cities disclosed plans to use special bonds to buy unused land, according to data from the China Academy of Sciences. Zhejiang province led with a budget of over CNY90 billion (USD13 billion, followed by Guangdong province with more than CNY89 billion, while Chongqing ranked first among cities at nearly CNY70 billion.

During the early part of this year, Chongqing plans to buy back 101 land plots in the main urban area and eight districts and counties for around CNY14.5 billion (USD2.1 billion).

Some 85 percent of the unused land to be acquired belongs to local state-owned companies, including China Poly Group, China Resources Holdings, and Oversea Chinese Town. Private firms own about 13 percent.

Provinces and cities will continue to promote the revitalization of existing land resources based on the goals set in this year's Government Work Report, with the pace of idle land buybacks likely remaining strong in 2026, industry experts pointed out.

The relationship between incremental supply and stock has been a key topic in the real estate market, said Yan Yuejin, deputy director of the E-House China Research and Development Institute. Efforts are being made to revitalize existing inventories, including using idle land in traditional sectors and allowing state firms to buy pre-owned homes, Yan pointed out. 

Editor: Martin Kadiev