Download PDF by World Bank: China: urban land management in an emerging market economy

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  • February 13, 2018
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By World Bank

ISBN-10: 0821323954

ISBN-13: 9780821323953

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Sample text

The development of the legal framework and institutions will have to be accelerated in order to clarify rights and obligations of owner and occupant alike, as well as to establish an ordered and publicly accessible system for recording such rights and obligations. Fortunately, the issue of state ownership per se appears to pose no problems in terms of efficient occupant behavior. Those who obtain leases can be expected to behave in roughly the same manner as landowners in other systems, if the leases are long-term (50+ years), renewable well ahead of the lease expiration date, and provided leaseholders can easily transfer use rights while retaining attractive after-tax capital gains.

Developed land has occupants who must suffer the effects of price changes that are retroactive in character. This will force them, in many instances, to recycle a repriced product rather than simply worry about how to use future inputs more efficiently. Nonresidential occupants of existing, developed sites should be given the option to lease or rent, with rent rates set high enough to provide a competitive rate of return on the implicit lease value of the property. Lease and rent levels would be set with regard to market-value data in locations and corridors that are self-evidently choice sites.

The transfer of uses will be restricted to those holding registered land use certificates, who are generally also the owners of any associated structures. But the regulations are conspicuously silent concerning the rights of public housing tenants to rent or sublet the rights to space they now occupy, particularly attractive ground-floor residential space located on commercial streets. This is the major source of black market activity. Rents or sublease values reflect land-related location factors, while what Page xxiv is actually traded is building space.

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China: urban land management in an emerging market economy by World Bank


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