Beijing Land Sales Revenue Decline

BEIJING (Reuters) – Revenue from land sales by China’s local governments dropped 16% in 2024 compared to the previous year, according to finance ministry data released on Friday.

The decline was 22.4% from January to November and 13.2% for all of 2023.

Land use rights sold to property developers had previously been a primary income source for local authorities. However, a prolonged slump in the property market has severely reduced this revenue as developers scale back land acquisitions.

The decrease in land sale revenues has impacted local government finances, which are responsible for economic development while managing debt risks.

To address these challenges, the Chinese government has initiated several measures aimed at mitigating risks associated with local government debt and the property market, as noted by the central bank governor on January 13.