Hainan Suspends Secondary Real Estate Transactions to Scotch Speculation
Zhang Xia
DATE:  Oct 30 2017
/ SOURCE:  Yicai
Hainan Suspends Secondary Real Estate Transactions to Scotch Speculation Hainan Suspends Secondary Real Estate Transactions to Scotch Speculation

(Yicai Global) Oct. 30 -- China's southernmost Hainan province has suspended relevant approvals for land transfer transactions in the secondary land market to quell illegal land speculation.

The island province, known as 'China's Hawaii,' has issued a special document to address a situation where transfer transactions in the secondary real estate market in the province have recently become more frequent, especially speculation and illegal transactions, including private deals lacking relevant approval and straw transactions that seek to circumvent legal restraints, as these have severely impacted the normal order of real estate market administration, chinanews.com recently reported.

'Secondary land market' refers to the resale of land to which land-use rights have already passed, namely, the market for sale and rental of newly-built real estate projects.

The suspension does not apply under three circumstances: legitimate home transfers, when the judiciary rules otherwise and in transfers of the use right to construct land in the restructuring and reorganization of state-owned enterprises (SOEs), the directive clarified. Relevant land transfers may not go through if the realty fails to meet the requirements for land transfer, and relevant investment and land development occur without reference to the time limit and terms stipulated in the contract granting the land-use rights, land-transfer fees fail to be paid, land ownership is in dispute or the judiciary and/or administrative agencies restrain the land transfer.

Hainan's provincial government will comprehensively administer and rectify land transactions and land speculation, and will investigate and clamp down on illegal land transactions, including private and straw transactions, per law. Violators of the land transfer suspension will be legally liable.

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Keywords:   HAINAN,Land Secondary Market,Speculation