Natural Resources Department: Prioritize regions with advantageous locations and well-developed supporting facilities

Regarding the highly关注ed real estate land supply issue, a relevant official from China’s Ministry of Natural Resources stated, “New construction land generally should not be used for commercial real estate development,” which does not mean that real estate land supply is halted.

The Ministry of Natural Resources introduced and interpreted the recently issued “Notice on Further Ensuring Natural Resource Elements.” The notice clearly states, “New construction land should prioritize supporting major projects and public welfare development, and generally should not be used for commercial real estate development.” This statement has attracted widespread market attention, with some interpretations exaggerating it as a “land restriction order” or a halt to land supply for real estate.

In response, Kong Weidong, Director of the Department of Natural Resources Development and Utilization, said that the document explicitly states, “New construction land generally should not be used for commercial real estate development,” which does not mean that land supply for real estate is stopped. Instead, it emphasizes making good use of existing stock resources through precise and optimized supply, implementing city-specific policies to control the pace and timing of land supply, prioritizing areas with advantageous locations and complete supporting facilities, and promoting enterprises to “secure land and build good houses,” thereby continuously improving urban functions and enhancing residents’ quality of life.

Kong Weidong also mentioned that currently, urbanization is shifting from rapid growth to stable development. Urban development is moving from large-scale expansion to a phase focused on quality improvement and efficiency of existing stock. In line with this year’s government work report’s requirements to “optimize incremental land and revitalize stock,” the authorities are coordinating the use of existing and new construction land as an important means to promote urban renewal and intrinsic development, as well as a key measure to support high-quality real estate development.