This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.
Notice on Issuing the Regulations on the Price Management of State-owned Construction Land in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
To all working units of the Executive Committee and all relevant units:
TheRegulations on the Price Management of State-owned Construction Land in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin have been deliberated and approved by the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, and are hereby issued for implementation. Should any issues arise during implementation, please promptly report them to the Urban Planning and Construction Bureau of the Cooperation Zone.
Urban Planning and Construction Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
November 15, 2024
Normative Document No. 9/2024 by the Urban Planning and Construction Bureau
Regulations on the Price Management of State-owned Construction Land in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
Article 1.
Purpose
These Regulations are formulated to further standardize and improve the paid use system of state-owned construction land in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Cooperation Zone”), pursuant to relevant laws and regulations and in consideration of the actual conditions of the Cooperation Zone.
Article 2.
Scope of Application
These Regulations shall govern the pricing for the granting, leasing, allocation and temporary use of state-owned construction land use rights, and temporary use of state-owned land within the Cooperation Zone.
Article 3.
Definitions
For the purpose of these Regulations, the following definitions apply:
1. “Land price of state-owned construction land use rights”(hereinafter referred to as “land price”) refers to the payment generated from the grant, lease, or supplementary payment of state-owned construction land use rights. The land price is determined based on normal market conditions and “seven accesses and site leveling” (i.e., access to roads, electricity, water supply, rainwater drainage, sewage drainage, telecommunications, gas outside the land parcel, and land leveling within the land parcel).
2. “Benchmark land price” refers to the regional average price of land rights for the statutory maximum term of use on a specific valuation date, as determined by the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Executive Committee”). The benchmark land price applies to construction land of different levels or homogeneous areas with average development and utilization conditions within the defined urban construction land scope, and is separately assessed according to commercial, residential, industrial, and other purposes.
3. “Standardized land price” refers to the price of land rights for standard land parcels, as determined by the Executive Committee for management purposes, based on current development and utilization conditions, normal market conditions, and statutory maximum term of use or policy-specified term, on a specific valuation date.
4. “Market appraisal price” refers to the objective and reasonable price of land at a certain point in time, comprehensively evaluated according to land valuation theories and methods, and under certain set conditions and purposes.
5. “Operational purposes” refers to land uses for real estate and industrial development and operation, including industrial, storage, commercial, office, hotel, residential, and other purposes.
Article 4.
Methods for Determining Land Price
The land prices for land grant, lease, and supplementary payment shall be determined as follows:
1. Land grant and lease. The Urban Planning and Construction Bureau of the Cooperation Zone will entrust a land valuation institution to assess the price of state-owned construction land use rights for the land parcel to be granted (leased) in accordance with the Regulations for Valuation on Urban Land, Technical Specifications for the Grant Price of State-owned Construction Land Use Rights, and other applicable regulations. The assessment shall take into account the planning conditions, industrial requirements, and other restrictions of the said land parcel, with reference to the normal market price level in the Cooperation Zone. Based on the assessment results, the Executive Committee will determine the starting price for the grant (lease) of state-owned construction land use rights.
The starting price for grant shall not be less than 70% of the benchmark land price for the corresponding land use type (see Attachment 1) and level in the respective area. For mixed-use land involving multiple purposes, the starting price for the grant shall not be less than 70% of the sum of the benchmark land prices for the corresponding land use types and levels, each multiplied by its respective proportion of building area used in Floor Area Ratio (hereinafter referred to as “FAR”) calculation.
The starting price for lease shall not be less than 70% of the converted benchmark land price for the lease method at the corresponding level. The conversion formula is: Benchmark land price for lease method = Benchmark land price for the purpose and level of the leased land parcel × (lease term ÷ statutory maximum term for grant).
2. Supplementary payment of land price. For projects approved by the Urban Planning and Construction Bureau of the Cooperation Zone during the construction process (such as for underground operational purposes), where the land price was not collected when obtaining the state-owned construction land use rights, and which fall under the circumstances requiring land price collection as stipulated in Article 8 of these Regulations, the land price shall be collected according to the standardized land price (after adjustment) or the benchmark land price (after adjustment). For land parcels without a standardized land price, the land price shall be collected according to the market appraisal price of the individual parcel.
Article 5.
Payment and Settlement of Land Price
The payment date of the land price shall be determined by the issuance date of the non-tax revenue receipt issued by the tax authority.
In principle, land prices shall be settled in Renminbi (RMB). For payments involving foreign currencies, the amount shall be converted to Renminbi based on the middle exchange rate publicly listed by the settlement bank on the date of payment.
Article 6.
Circumstances for Free Use of Land
For land uses that comply with the Catalog of Allocated Land, the land use entity shall submit a land use application to the Urban Planning and Construction Bureau of the Cooperation Zone with the approval document from the competent project approval authority. Upon approval, the land may be supplied through free allocation without an upper limit on the land use term and shall be delivered in its current condition. Costs related to the “seven accesses and site leveling” of the land parcel and compensation for land acquisition and resettlement shall be borne by the land use entity.
Article 7.
Waterfront Construction Land
Construction land adjacent to coastlines (including Modaomen Waterway, Maliuzhou Waterway, Qixin Strait, Shizimen Tunnel, Jiama Estuary, Hengqin Bay, Dadong Bay, and southern sea areas) shall be subject to a 15% price increase based on the benchmark land price for the corresponding land use. Construction land adjacent to riverbanks (Huijin Bay, Tianmu River) shall be subject to a 10% price increase based on the benchmark land price for the corresponding land use.
Waterfront construction land refers to the first parcel of construction land adjacent to coastlines or riverbanks, excluding industrial and mining storage land, public management and public service land, public facility land, transportation land, and special-purpose land.
For port and dock land and yacht dock land acquired through grants that occupy coastlines, additional land prices shall be collected based on the length of coastline occupied, which shall be assessed and determined concurrently with the price of the state-owned construction land use rights to be granted.
Article 8.
Circumstances Requiring Land Price Collection
Land prices shall be collected under the following circumstances:
1. The building area included in FAR calculation, as determined by the Urban Planning and Construction Bureau of the Cooperation Zone, shall be subject to land price collection;
2. For the transfer of allocated land use rights with legal buildings above ground, or for applications to convert to the grant method, approval shall be obtained, and land prices shall be paid according to the market appraisal price as determined at the time when the application is legally accepted;
3. For state-owned construction land use rights granted or leased through public methods such as bidding, auction, or listing, land prices shall be collected according to the actual transaction price;
4. For single-purpose and independently occupied parking lot (building, garage) land supplied through grant or lease, the starting price for grant (lease) shall be determined with reference to the market appraisal price;
5. For cases involving supplementary payment of land prices, the final area for land price collection shall be the area stated in the real estate survey report, with the following collection standards:
(1) For above-ground buildings (structures) requiring supplementary payment of land prices, the standardized land price (after adjustment) for the corresponding purpose at the time when the Urban Planning and Construction Bureau of the Cooperation Zone accepts and reviews the land price shall be collected. For the same land parcel involving comprehensive purposes, the comprehensive floor unit price of the land parcel shall be determined by dividing the sum of land prices for various purposes by the building area used in FAR calculation of the land parcel. The final area for land price collection shall be the area stated in the real estate survey report;
(2) For non-independently occupied parking lots (buildings, garages) using the above-ground space of the land parcel as supporting facilities, if these areas are not included in the building area used in FAR calculation, supplementary payment of land prices is required. This payment shall be calculated based on the standardized land price (after adjustment) for the corresponding purpose at the time when the Urban Planning and Construction Bureau of the Cooperation Zone accepts and reviews the land price. The final area for land price collection shall be the area stated in the real estate survey report (including parking spaces, driveways, and other shared areas);
(3) Land prices shall be collected for underground buildings (structures) used for commercial, residential, office, hotel, and other operational purposes (excluding industrial and storage purposes). If the purpose and area of underground buildings (structures) have been clearly specified at the time of the grant (lease) of state-owned construction land use rights, the said portion of the land price shall be included in the land grant fee (rent) and collected according to the actual transaction price. If the purpose and area of underground buildings (structures) were not clearly specified at the time of the grant (lease) of state-owned construction land use rights, but were approved for construction by the Urban Planning and Construction Bureau of the Cooperation Zone during the project construction process, supplementary payment of land prices is required, which shall be collected according to the benchmark land price for the corresponding purpose at the time when the Urban Planning and Construction Bureau of the Cooperation Zone accepts and reviews the land price, subject to underground space floor adjustment (see Attachment 2). The final area for land price collection shall be the area stated in the real estate survey report;
(4) For above-ground or underground buildings (structures) that are illegally overbuilt but allowed to be retained after legal disposition by the law enforcement department, land prices shall be collected according to the standardized land price (after adjustment) for the corresponding purpose at the time when the Urban Planning and Construction Bureau of the Cooperation Zone accepts and reviews the land price;
6. For state-owned construction land use rights obtained through grant that require land replacement due to planning adjustments or other reasons, the Urban Planning and Construction Bureau of the Cooperation Zone shall entrust a land valuation institution to assess the market appraisal prices of the new land and the original land at the time of applying for land replacement;
7. For projects that are stipulated in project cooperation agreements, project supervision agreements, or land grant contracts as not to be divided and transferred in principle, division and transfer may proceed only after obtaining the approval opinion for division and transfer from the competent industrial authority and undergoing legal review and approval procedures. If the division and transfer result in land value appreciation, supplementary payment of land prices shall be made according to the market appraisal price at the time of processing the division and transfer. If the division and transfer only involves project supporting facilities, land prices shall be collected according to the market appraisal price at the time of processing the division and transfer, with the specific formula as follows: (Sum of market appraisal prices for various purposes ÷ Total floor area ratio building area of the land parcel) × Building area of supporting facilities to be divided and transferred;
8. For construction land use rights obtained through bidding, auction, or listing, or construction land use rights historically granted by agreement, which have passed planning condition verification by the Urban Planning and Construction Bureau of the Cooperation Zone, but where changes in the confirmed building areas of various functions occur during the real estate confirmation stage due to different measurement standards, if the total confirmed area requiring land price collection exceeds the total building area used in FAR calculation approved by the Urban Planning and Construction Bureau of the Cooperation Zone, the excess portion shall be collected according to the standardized land price (after adjustment) for the corresponding purpose at the time of acceptance and review of the land price;
9. The compensation standard for temporary land use shall be adjusted with reference to the standardized land price, collected with the month as the minimum unit, and paid in full at one time. The temporary land use compensation fee for each temporary land parcel shall be calculated based on the temporary land area, construction project type, etc. (see Attachments 3 and 4 for collection standards and adjustment coefficients);
10. When supplementary payment of land prices is involved for land parcels without a standardized land price, land price shall be collected according to the market appraisal price;
11. Other circumstances requiring land price collection as stipulated by laws, policies, and regulations.
Article 9.
Circumstances Not Requiring Land Price Collection
Land prices shall not be collected under the following circumstances:
1. Buildings (structures) that are not calculated as building area pursuant to the Specifications for Estate Surveying;
2. State-owned construction land use rights obtained through allocation in accordance with legal approval;
3. Underground or semi-underground portions of buildings as determined by the Urban Planning and Construction Bureau of the Cooperation Zone (excluding those used for commercial, office, residential, hotel, and other operational purposes);
4. Municipal facilities including roads, squares, flood drainage channels, corridors, public toilets, public green spaces, and park land;
5. Portions of buildings identified by the Urban Planning and Construction Bureau of the Cooperation Zone as elevated public spaces, public passages, fire evacuation areas, covered pedestrian corridors, covered pedestrian spaces, and underground connecting passages for public use (excluding those portions of the aforementioned functions that are included in the building area included in FAR calculation);
6. Granted gas stations, refueling stations, or mixed gas and refueling station land that has been approved to add charging functions without increasing the land area;
7. Construction land use rights obtained through bidding, auction, listing, or historical agreement, which have been verified against the planning conditions by the Urban Planning and Construction Bureau of the Cooperation Zone, but where changes in the confirmed building areas of various functions occur during the real estate confirmation stage due to differing measurement standards, provided that the total confirmed area requiring land price collection does not exceed the total building area used in FAR calculation approved by the Urban Planning and Construction Bureau of the Cooperation Zone;
8. Buildings that are stipulated in the land grant contract (agreement) to be constructed and transferred without compensation to the receiving department, where the confirmed building area exceeds the area specified in the planning and design conditions;
9. Non-independently occupied parking lots (buildings, garages) using the underground space of the land parcel as supporting facilities for the land parcel;
10. For existing operational industrial and storage land, where land utilization rate and floor area ratio are increased with approval under the premise of conforming to planning and not changing the land use purposes, no additional land price shall be collected;
11. For land that has completed supply procedures within the Cooperation Zone before the implementation date of these Regulations, underground buildings (structures) used for purposes other than commercial operations shall not be subject to land price collection;
12. For land that has completed supply procedures within the Cooperation Zone before the implementation date of these Regulations, non-independently occupied parking lots (buildings, garages) using the above-ground space of the land parcel as supporting facilities for the land parcel shall not be subject to land price collection;
13. Circumstances where land price collection is not required as stipulated by laws, policies, and regulations, legally determined by the Urban Planning and Construction Bureau of the Cooperation Zone, or agreed upon in the land grant contract (agreement).
Article 10.
Provisions for Land Price Payment
Land prices shall be paid in full and on time in accordance with the provisions of the land grant contract (agreement). For overdue payments, a penalty of one per thousand of the delayed payment amount shall be charged daily from the date of default. For installment payments of land grant prices, the grantee shall pay the land price for the second and subsequent installments in accordance with the land grant contract (agreement).
For land supplied through lease that involves land price payment, the total land price for the lease term may be paid in full when signing the lease contract, or annual rent may be paid in installments. The annual land rent standard shall be determined by dividing the total land price for the lease term as agreed in the contract by the lease term of the land parcel.
Where laws and regulations provide otherwise, such provisions shall prevail.
Article 11.
Supplementary Provisions
The Urban Planning and Construction Bureau of the Cooperation Zone shall be responsible for the interpretation of these Regulations.
These Regulations shall come into effect on November 15, 2024, with a validity period of five years. The Regulations for the Administration of State-owned Land Prices in Hengqin New Area shall be repealed simultaneously.
Attachments:
1. Table of Land Price Adjustment Coefficients by Land Use Type in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
2. Tables of Floor Adjustment Coefficient for Above-ground and Underground Spaces
3. Table of Compensation Standard for Temporary Land Use
4. Table of Factor Adjustment Coefficient for Temporary Land Use Compensation
Attachment 1:
Table of Land Price Adjustment Coefficientsby Land Use Type in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
Notes:
1. Published land prices include benchmark land prices and standardized land prices.
2. During the benchmark land price adjustment process, the aforementioned adjustment coefficients can be applied for land type refinement. These coefficients are used to adjust land price standards from primary land use categories (e.g., commercial, residential, office, hotel, industrial, public administration and public services, and public utilities) to secondary land use types, as defined in the current land use classification system. The adjusted values then serve as reference benchmark land prices for the corresponding secondary land use type’s grade and zone.
3. During the standardized land price adjustment process, the above adjustment coefficients may be applied for land type corrections.
4. Land with multiple uses should have its land type determined proportionally according to each type of use.
5. Unless otherwise specified, prices after adjustment in this table represent unit floor prices or ground unit prices, and in principle conform to the price implications of the applicable published land price type.
Attachment 2:
Table of Floor Adjustment Coefficients for Above-Ground Commercial Land Buildings
Notes:
1. The floor adjustment coefficients for above-ground commercial land buildings (including retail commercial land, wholesale market land, food and beverage land, and other secondary category commercial lands) are used to adjust the average commercial floor unit price to the floor unit price of a specific floor.
2. For entertainment land and business and financial land within the secondary category of commercial land, the floor adjustment coefficients refer to the floor allocation coefficients in the office land adjustment system established in the benchmark land price results. No above-ground building floor adjustment is made for large-scale amusement facility land.
3. For mixed-use land containing commercial sections or large-scale integrated complexes with partially independent commercial construction, the floor adjustment coefficients shall be applied according to the actual number of floors in the commercial section as per the above table.
4. If the above-ground commercial land building involves multiple floors and the building area of each floor cannot be clearly defined, the building area shall be determined by dividing equally according to the number of floors.
Table of Floor Adjustment Coefficients for Underground Commercial Buildings
Note: Floor adjustments for underground commercial buildings are made based on the average floor unit price of the corresponding above-ground commercial use.
Table of Floor Adjustment Coefficients for Underground Residential, Office, and Hotel Buildings
Note: Floor adjustments for underground residential, office, and hotel buildings are made based on the average floor unit price of the corresponding above-ground use.
Attachment 3:
Table of Compensation Standard for Temporary Land Use
Notes:
1. The above compensation fees for temporary land use after standardized land price adjustment represent the annual rent per unit area of land for the corresponding type of temporary land use, measured in yuan/square meter/year.
2. For non-operational projects such as urban infrastructure or public service facilities, temporary material storage yards, construction access roads, soil and stone waste storage sites, and other temporary structures established during construction are exempt from temporary land use compensation fees upon approval.
3. Temporary land use for emergency purposes such as disaster relief and public health safety is exempt from temporary land use compensation fees upon approval.
Attachment 4:
Table of Factor Adjustment Coefficients for Temporary Land Use Compensation