Land Lease Market In China

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Whenever there has been a serious talk, then somehow or the other the talk includes about the economical activities prevailing in these days. People cannot forget to mention the economic hub which is nothing the place China. It becomes indispensable to survey the conditions of lease market that prevails in China. Like every other government, Chinese government also encourages the leasing of lands and its corresponding properties. But, astonishingly, a survey was conducted in 1998 that showed that only 3% to 4% of the total land was leased in eight provinces of China. In the province of Zhejiang, the percentage rises but still it manages to reach only 8%.

Due to enormous population, China is facing with an uphill task of sustain the agricultural sector that is the source of provision of income to the number of family farms. In China, land leasing is promoted because land is owned by the government and, legally speaking, land selling does not exist. In the light of present circumstances and the evidence that is provided by the surveys, it is of utmost importance that one has to know what the factors are, that hinders the development of land lease market in China and what have been solutions in order to increase land lease percentage?

One of the reasons why the land lease market, in China, is under developed is because the land is already leased by the government to its subjects. So people, generally, do not try to further lease out their land. That is why the percentage in Beijing is also below 10%. In China, there is a law that is called Land Use Rights that prescribes that the land is property of government only and it can reclaim back. Problem arises when there are foreign investors and they make buildings on that land which are owned by parties more than one. So this creates complex legal problems if none of the parties is willing enough to cooperate. In the case of China, it must be concluded that land leasing should be promoted as it increases the efficiency exponentially.

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