Announcement of Beijing Municipal Bureau of Land and Resources on the Issues Related to Benchmark Land Price Application of the Transfer of State-owned Construction Land Use Right

To further implement the Notice of the People's Government of Beijing Municipality on the Issues Related to Benchmark Land Price of the Transfer of State-owned Construction Land Use Right (Beijing Government [2014] No. 26) and promote the work related to the transfer of state-owned construction land use right, as well as after reporting to the municipal government for approval, we hereby announce the relevant issues as follows:

1. Amendment of volume rate of lands subject to planning control

In case the planned volume rate is lower than the average volume rate of the same class of benchmark land price due to building height restriction caused by the factors like historical and cultural protection, aviation regulatory clearance, high voltage corridor protection or social welfare needs, the amendment of volume rate can be calculated according to the average volume rate of the same class when evaluating land transfer price. Meanwhile, the residential land in the historic reservation area will no longer be subject to amendment of use. Where it's applicable to use the above average volume rate to evaluate land transfer price, the total amount of land transfer should be determined by multiplying the finalized unit price with land area if the volume rate is less than 1.

2. Land parcels with volume rate of 0

For parts of the lands which have been used in accordance with regulations due to such factors as technical standard and industry characteristics (including building materials, waste water treatment, power transmission, ground parking lot, etc.) but their volume rate of par is 0, land use has been, but the volume of land parcel was 0, then the volume rate should be considered as 1 when evaluating the land transfer price.

3. Price of use right of allocated lands

For land projects transferred at current situation , the price of allocated land use rights (land acquisition and development costs) can be measured and calculated by referring to the land price of updated price results of benchmark land price after deduction of government land transfer revenue. Of which, the rate of 75% is applicable to commercial, residential, and office use, and 85% for industrial use . The above-mentioned price for land use rights is only used for evaluating the lands transferred at current situation for the state-owned construction land use right.

4. Application of volume rate of commercial land or storey correction coefficient

In agreed transfer, projects transferred at current situation or transferred upon the completion should use the correction coefficient of commercial storey for correction when using benchmark land price coefficient to evaluate the commercial land transfer and involving storey-based transfer or applicable to storey-based building area (measured or estimated area); if not applicable to storey-based area, the correction coefficient for commercial storey should be used for correction. Transfer of new commercial land projects should be corrected by the correction coefficient of volume rate according to planning conditions and upon completion of the project, the correction coefficient of commercial storey will no longer be used to adjust the price level of commercial land transferred.

5. Agreed land transfer price level of separate siting projects

For projects whose land acquisition, demolition and infrastructure construction are finished at its own while not belonging to the primary land development project (such as the approved and agreed transferred projects with separate siting), their land development costs should be audited by the audit department of our bureau as commissioned by the project subject. If the project subject is state-owned enterprises or institutions, the audit results should be identified by the superior units; the land development cost of other projects should be identified by the local District People's Government. Land development costs, after being audited and identified, can be used as the reference for land price evaluation. In land price evaluation, the total of government land transfer revenue and land development costs should not be less than the lower limit of benchmark land price of this land parcel. If the total of government land transfer revenue and land development costs is less than the lower limit of benchmark land price of this land parcel, the government land transfer revenue should be increased until the total of government land transfer revenue and land development costs is not less than the lower limit of benchmark land price of this land parcel.

6. Land price payback of bidding, auction and listing projects

For profit-oriented lands transferred in the way of bidding, auction and listing, the land price should be agreed in the bidding, auction and listing documents and transfer contract; in principle, it is not allowed to change the planning conditions. If changes of planning conditions are approved, the land price should be paid back according to the following criteria.

For the scale of ground construction land transferred increased by less than 3% (including 3%) without changes of the planning conditions, the land price should be paid back according to the following criteria: Land price payback for the increased ground land size = Unit price of floor area upon land transaction × Increased transferrable ground building size; in case of adjustment of different purposes, the floor unit price difference should be made good in addition to the land price payback calculated in accordance with the above criteria.

For lands whose ground construction scale increase by more than 3%, the land price payback should be evaluated and determined in accordance with the relevant requirements of the Notice of the Ministry of Land and Resources on the Introduction of Land Price Evaluation Technical Specification for State-owned Construction Land Use Right Transfer (Trial)" (State Land and Resources Department (2013) No. 20, hereinafter referred to as "the Evaluation Technical Specification").

For the bidding, auction and listing projects whose transfer notices have been published, the provisions of the published transfer documents should be implemented.

7. Increased volume rate of industrial land

To promote the flexible utilization of stock land for construction use, it is encouraged to increase investment on the existing industrial land (including first-class industrial land (M1), second-class industrial land (M2), third-class industrial land (M3)) so as to improve land use intensity. For industrial land projects that have been approved by the planning department and do not change their purpose and adjust their volume rate, they should modify the land transfer contract according to the approved planning documents without increasing the land transfer price. The bidding, auction and listing projects having finished transactions should follow the original bidding, auction and listing documents and transfer contract.

8. Increased scale of ground construction land of the agreed transfer projects

For project lands that have been agreed to transfer, the ground construction scale should not increase by more 3%, and the land price for the newly increased part should be calculated based on the land price level of the original contract. If the construction scale increase by more than 3% or the land purpose is adjusted, the land price levels should be reviewed pursuant to the relevant provisions of the evaluation technical specification, and be included into the government land transfer revenue in full amount.

9. Increased underground scale of transferred lands

For the transferred lands whose primary land development costs (or the land acquisition and demolition costs due to self-development) have been apportioned or recovered, the increased transferred underground scale will not involve the adjustment of volume rate. To promote conservation and intensive land utilization, it's encouraged to use the underground space, and then the transferred underground scale should follow the standards of transferred land price reviewed based on government land transfer revenue (not including land acquisition and development costs).

10. Penalties for price level of lands attending supplemented formalities 

In accordance with the Decision of the State Council on Deepening Reform and Strengthening Land Management (State Council [2004] No. 28), which specifies that: The lands used in an illegal way and their buildings and facilities should be demolished or confiscated according to the law and this disposal should not be replaced by penalties or supplemented formalities; for those projects that can make good with supplemented formalities should first be fined according to law and then be recollected with land acquisition compensation and land transfer fee and related fees at highest level based on the new regulations. For transfer formalities of illegal used lands in our city, the land price should be reviewed based on the higher limit of the benchmark land price by considering the dynamic changes of land price, except for government subsidized housing.

11. Commissioned evaluation of confidential projects

In April 2015, our bureau issued the Interim Provisions of Land Price Evaluation of State-owned Construction Land Use Right (Beijing Bureau of Land and Resources [2015] No. 87) together with relevant departments, and establish a construction land valuation institutional repositories of Beijing City. Evaluation of the land transfer price should be commissioned by the government and the evaluation agency will be randomly selected from the institutional repositories. The land price of confidential projects should be evaluated by commissioning the evaluation agency, rather than by random selection; and the evaluation agency will be selected by the project subject from the transferred land price evaluation institutional repositories according to the project subject according to the confidentiality provisions.

The above benchmark transferred land price of state-owned construction land use right should be implemented since the date of this announcement. For projects that have followed the land price level of government land transfer revenue (or rentals) determined by the state-owned construction land use right review regulations and have signed state-owned construction land use right transfer contract (or state-owned construction land use right leasing contract), should continue to implement the original contract.

Hereby released！