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China unveils measures to boost property development

07 June 2012

In an effort to spur property developers to invest more, China’s Ministry of Land and Resources (MLR) announced that developers that keep development plots idle for more than a year after the planned start of construction will be charged 20% of the land value as an “idle fee”. We think the move may indeed spur more developer activity after investment slowed to a 9.2% YoY growth rate in April, down from an average of 18.7% YoY over the first four months of the year.

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