mineral resources

Yingting lawyer reminds

Attention, business owners, there is another big news about land policy.

The two cities took action at the same time to revitalize inefficient land.

On May 29, Shangrao, Jiangxi, and Changsha, Hunan, simultaneously released typical practices for inefficient land redevelopment.

In Shangrao, inefficient land has been revitalized since 2025.1175 acres, involving various types of industrial land, land approved but not supplied, etc.

Changsha was even more aggressive, directly locking in the first batch11,000 acresInefficient land needs to be revitalized on a large scale.

Why the sudden focus on inefficient land?

This matter has to start in 2023. That year, the Ministry of Natural Resources issued a document called the "Notice on Carrying out Pilot Work on Redevelopment of Inefficient Land" and selected dozens of cities across the country for pilot projects. Shangrao and Changsha are both on the pilot list.

What is inefficient land? To put it simply: either the company has taken the land but did not develop it and left it idle for a long time; or the project has stopped production long ago and the land is vacant; and in some cases, the planning is unreasonable and the utilization rate is extremely low.

Now that pilot cities are starting to advance on a large scale, what does this mean?

For land-based enterprises: Opportunities are here

Companies that have industrial land in their hands but have not developed it or have low utilization rates, please take note - this may be a good opportunity for you to revitalize your assets.

Why do you say that? Because there are several paths to inefficient redevelopment:

First,Upgrade yourself. The government gives you policy support, allowing you to adjust planning, increase floor area ratio, and invest in upgrades yourself.

Second,Transfer or joint development. Introduce other investors to cooperate in development and share profits.

Third,Transfer after government purchase and reserve. Some places allow the government to take back land at a reasonable price and give you a share after re-selling it.

But there are risks: non-compliance may result in forced recall

I must remind everyone that there is a risk point in the process of redevelopment of inefficient land:The government may forcefully take back your land use rights on the grounds of "idle land".

The "Land Management Law" and the "Measures for the Disposal of Idle Land" both stipulate that if the land transferred has not been developed for one year after the date of commencement of development, a land idle fee equivalent to less than 20% of the land use right transfer fee can be levied; if the development has not been started for two years, the land use rights can be recovered without compensation.

This "two-year" period is a sharp sword hanging over the heads of many companies.

Yingting lawyer reminds

Redevelopment of inefficient land is a general trend. Companies should pay attention to three main points:

First,See if you have any idle land in your hands, if so, find a way to start development as soon as possible, or communicate with the government to include it in the scope of redevelopment.

Second,Pay attention to retaining evidence of development investment, prove that you are not "intentionally" idle, but caused by objective reasons.

Third,Before making major decisions such as land planning adjustments and transfers, be sure to find a professional lawyer to check, avoid stepping into pitfalls.

If you have any questions about land revitalization and inefficient land redevelopment, feel free to contact me. I am lawyer Zhu Zi, specializing in corporate land legal services.

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