How to promote real estate developers to develop agricultural land

There is a general impression in the society that real estate developers are hoarding a large amount of land on their hands and refuse to develop them

The purpose is to create an environment in which demand exceeds supply, so as to push up property prices and make huge profits. This kind of accusation is far from the truth, and it is not good to solve the problem. The reality is that the real estate developers are “hoarding" mainly agricultural land, not land for development; it is the existing legislation that does not allow real estate developers to develop these land, not real estate developers deliberately hoarding.

To develop these lands, there are two major barriers to be passed. First, we must successfully obtain the approval of the TPB, and convert the use of these lands from being used only for farming to development and construction

Second, we must succeed in reaching the government. The land price agreement, after the land price has been paid, can only rewrite the land grant provisions to make the land meet the development needs.

Not all agricultural land in the hands of real estate developers meets the conditions for conversion to development

For example, remote locations, inadequate infrastructure, or conservation considerations can all lead to applications rejected by the Town Planning Board. Even if the conditions are generally in line, there are many complicated procedures to be completed. It can be completed within five years and can be celebrated. There are also many beliefs that take more than ten years.

If our society does not study how to speed up the application process for such a change of use, it only knows that pointing to the real estate developers will not help increase the supply of land available for development.

In addition to the difficulty of rezoning land use, it is not easy to obtain land premiums. Many people may think that this is because real estate developers are not willing to pay the price and try to suppress the government price. In fact, this is only the appearance. The real reason is that the government refuses to accept that the land owned by real estate developers is not ordinary agricultural land, but has a development prospect. The value of agricultural land will exceed that of ordinary agricultural land.

This difference in understanding is the main reason for the lack of land prices. Because the calculation method of land premium is the value of the land after the conversion is used, minus the original value of the land. At present, it is not difficult for the Government and real estate developers to obtain an agreement on the value of the land after the rezoning. The main dispute is the question of the value of the original farmland. The government believes that these land is still agricultural land before it is used, so it can only be valued by agricultural land. However, real estate developers believe that agricultural land can also have different values. If the infrastructure conditions are good and the application for development is approved, the value will certainly be higher.

In fact, the market is not without the transaction price of agricultural land for the government’s reference. The opportunity for development is far away, only a few hundred yuan a mile; if the opportunity is high, it can be over 2,000 yuan; but the government’s estimate is only a thousand yuan. The government insisted on its own evaluation price and refused to accept the market transaction price.

I feel that the Government should not be entangled with real estate developers on these issues. The government should remember that its main task is to reduce the price of property by increasing the supply of land. On the one hand, the government cannot think that there is a flat building in the community, but on the other hand, it does not want to lower the land price. If the Government is setting the price of land premiums, not only focusing on the income of the Treasury, but also thinking that it has the political goal of guiding the price of property prices to fall back, it should not be preoccupied with the issue of land premiums. Instead, it should reach a compensation with real estate developers as early as possible. Land price agreement. In this way, the real estate developer cannot afford to leave the land idle, because once the agricultural land is converted into development land, the real estate developer has to complete the construction within the specified time limit. As long as the Government approves fast, land supply will increase, property prices will fall, and the profits of real estate developers will not be as much as imagined at the beginning. The real benefit will be those who do not have a building.

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