Business · Markets · 1 day ago

Guangzhou and Shanghai propose rules to renew commercial land leases

Guangzhou and Shanghai propose rules to renew commercial land leases

China is working to revive its real estate industry, and uncertainty over expiring land-use rights has worried investors in commercial property.

Leases on land worth more than US$14 billion are due to expire within the next 20 years.

Guangzhou and Shanghai have announced new rules for renewing land-use rights for commercial and industrial sites.

The rules are intended to address gaps in how expired rights are handled.

Officials and analysts say clearer renewal terms could help stabilise the commercial property market and support investor confidence.

The policies may also make it easier for developers to issue real estate investment trusts, which can help them raise funds.

The announcements mark a step toward resolving the issue, but no further timeline or details are given.

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