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2014-04-08

Ministry of Land and Resources: Paid Supply Profitable Senior-care Land and Avoid “Enclosure” in the

     According to the news on the website of the Ministry of Land and Resources, Jiang Daming, Director of the Ministry of Land and Resources, Secretary of the Leading Party Members’ Group and General State-owned Land Supervisor, presided the 7th minister office conference to research the supply and supervision of senior-care land and other related policies on April 3. It is proposed in the conference that we shall seriously carry out Several Opinions of the State Council on Accelerating the Development of Senior-care Service Industry, vigorously guarantee the supply of senior-care land, regulate the development, application and management of senior-care land, and incorporate the senior-care land to the state-owned construction-used land supply plan. 
    
The conference pointed out that at present, our country has entered to the rapid development stage of population ageing. The Ministry of Land and Resources shall seriously implement Several Opinions of the State Council on Accelerating the Development of Senior-care Service Industry, improve the related land supply policies as soon as possible, guarantee the supply of senior-care land and regulate the development, application and management of senior-care land. 
    
The conference put forward that we shall incorporate the senior-care land to the state-owned construction-used land supply plan. The non-profit senior-care land determined by the Senior-care Authority may adopt the supply mode of assignment; the for-profit senior-care land shall adopt the supply mode of leasing, selling and other paid ways. To reduce the construction cost of senior-care service facilities, we encourage employing the supply mode of leasing. In addition, we encourage the senior-care service agencies to use the existing construction-used land to build the senior-care facilities. “Healthy senior-care real estate” (JKYLDC), the official WeChat account of China’s healthy senior-care real estate service union, focuses on the health-care and senior-care real estate, health-care real estate and senior-care real estate. The conference also proposed that we should strengthen the supervision and management of senior-care land and prevent the occurrence of “enclosure”, unauthorized change of land use purposes, land division, land transfer or any behavior of disposal of senior-care land in the name of “senior care”.
    
For the active effect of this action on the development of senior-care industry, the related leader of Beijing Bureau of Land and Resources expressed that after the senior-care land is incorporated to the land supply plan, there is a requirement not only on the number of land annually used for senior-care facilities, but also on the specific plot. In other words, the land supply independently specified will provide more powerful guarantee for construction of senior-care facilities. 

    A senior real-estate researcher from a large-scale broker company in Shanghai expressed that based on the contents released in this minister office conference, a clear tone is set to the selling criterion of the land used for future senior-care industry, i.e. encourage the leasing and feasible application of land inventory.
   This researcher said that after the selling criterion of the land used for senior-care industry is specified, there are two points worthy being concerned by individual real-estate stocks in the name of senior care in the capital market; one is the pricing model of land leasing in the senior-care industry and it is predicted that the leasing price of land used for senior-care industry may be lower than that of generally operating land; the other is that if it requires using the land inventory, whether the land system reform would speed up and have breakthroughs will be a key point. 

    With the aggravation of population ageing in recent years, develops look to future increase of senior-care industry. However, as a matter of fact, many developers, merely in the name of senior-care real estate, conduct the development of general housing. “Enclosure” in the name of senior care has been a strategy that many developers apply to get the land. 
    
In March, Pingan, a giant in the insurance industry, secretly entered to the senior-care real estate by investing more than RMB 30 billion and “enclosed” the land at the total area of about 16 square kilometers. Nevertheless, some insiders pointed out that the insurance enterprise steps to the senior-care real estate industry with the purpose of enclosure and profit making, rather than innovation of development modes; at present, the so-called real estate industry has become a spring board for some enterprises to enter to the real estate industry. 
    
Some insiders expressed that with the influence of purchase limitation and other polices in recent years, many investments start flowing to the tourism real estate, senior-care real estate and other fields from the residential real estate. Therefore, to fundamentally restrain the unusual phenomenon of “enclosure” in the name of senior care, the center of government supervision shall be put on the financial field instead of the real estate field and the Government has to do more in respect of supervising the flowing hot money.