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BEIJING, October 28 (TMTPOST) — The land market continues to be sluggish, with many first-and second-tier cities having difficulty completing their annual land supply plans.

More cities intended to adjust the centralized land supply scheme. On Friday, the Jiangxi Provincial Department of Housing and Urban-Rural Development stated that it would coordinate with the Provincial Department of Natural Resources to actively seek support from the relevant national ministries and commissions to try to remove Nanchang from the list of centralized land supply.

The centralized land supply scheme has been in place for more than a year. In February 2021, to curb the rise in land prices to help market players to get land, residential land auctions were implemented with the centralized announcement of the sale and the centralized organization of the sale activities in the four first-tier cities, as well as 18 second-tier cities such as Nanjing, Suzhou, and Hangzhou. A few more cities were included in the list afterwards.

These cities were required to release residential land sale announcements no more than three times a year, and the time interval and the number of lands should be relatively balanced.

From the second half of 2021, the whole real estate industry has suffered from a cash flow crisis. Many real estate enterprises no longer have the same land acquisition strength as previous years. The centralized land supply scheme requires more capital from enterprises, which makes them more cautious in acquiring land. As a result, the supply in the land market exceeds demand, and many governments are having difficulty completing their land leasehold plans.

According to the data released by the China Index Academy on Friday, as of the end of October, the overall completion rates of the national residential land supply plan in 22 cities under centralized land scheme supply are less than 50%. Only Hangzhou has completed its annual land supply plan, with a completion rate of 114%. Chengdu and Hefei's land supply plans have 96% and 91% completion rates, respectively.

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