---
title: "Storage, start?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/228660649.md"
description: "Recently, multiple regions in Guangdong Province have announced plans to use special bonds to repurchase idle land, involving 13 cities, 99 plots of land, and 25.4 billion yuan, mainly for residential land, with most buyers being state-owned enterprises. The repurchase funds mainly come from special bonds, and the Guangdong Provincial Department of Finance plans to strive for an additional special bond quota of 508.5 billion yuan, with the repurchase amount accounting for 5%. Although other provinces and cities have land collection announcements, progress is limited. Future acquisition amounts will require approval, and overall volume still needs to be observed"
datetime: "2025-02-18T08:41:21.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/228660649.md)
  - [en](https://longbridge.com/en/news/228660649.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/228660649.md)
generator: "portal-rs"
---

# Storage, start?

**Core Viewpoint**

Recently, multiple regions in Guangdong Province have announced plans to use special bonds to repurchase idle land. According to incomplete statistics, a total of 13 cities have issued announcements; involving 99 plots of land and 25.4 billion yuan; the land to be repurchased is mostly residential land; the sellers are mostly state-owned enterprises; the land transfer dates are mostly between 2020-2023; the overall land acquisition amount/land purchase amount is 89%.

In other provinces and cities, although some have issued land collection announcements, no substantial progress has been observed so far. Additionally, it is worth noting that the land reserve special bonds are not all used for the acquisition of idle land; for example, in Beijing, special bonds for land reserves are planned to be issued on February 18, but mainly for primary land development.

Looking ahead: 1) The projects announced by the cities still require approval, and the final acquisition amount is uncertain; 2) Nationwide, whether there will be a significant increase still needs to be observed, as there are still bottlenecks in practice; 3) The land reserve special bonds will objectively occupy the quota of special bonds used for project construction.

**Report Summary**

**Q1: What happened?**

**After the Spring Festival, multiple regions in Guangdong Province have intensively announced plans to repurchase idle land.** According to incomplete statistics, as of February 14, 13 cities have issued related announcements, involving 99 plots of land and a total proposed repurchase amount of 25.4 billion yuan. Among them, the larger repurchase scale is mainly in Huizhou (including its subordinate districts and counties), with 38 plots and a total of 11 billion yuan, followed by Zhuhai, with 11 plots and 4.1 billion yuan.

**Previously,** although some provinces and cities had also issued related content, it was mainly for collection announcements. This time, the intensive announcements from multiple cities in Guangdong Province have attracted market attention.

**Q2: Where does the money come from?**

**Mainly from special bond funds.** In November last year, the Ministry of Natural Resources issued a notice on the use of local government special bond funds to recover and acquire idle land, allowing special bonds to be used for repurchasing idle land. The current announcements from various cities are also based on this document. In January this year, the director of the Guangdong Provincial Department of Finance also mentioned, "Regarding the implementation of using special bonds to acquire land and purchase idle commercial housing, Guangdong is actively researching and promoting, striving for the policy to be implemented and effective as soon as possible."

**How large is the scale?** In our sample statistics, the total proposed repurchase amount in Guangdong Province is 25.4 billion yuan. According to the Guangdong Provincial Department of Finance, "In 2024, our province aims to secure a new quota of 50.85 billion yuan in central special bonds," meaning the proposed repurchase amount accounts for 254/5085=5% of the new special bond quota.

**Q3: What are the characteristics of the land to be repurchased?**

**First, in terms of land type, it is mainly residential land,** accounting for 50%, with other types also involved.

**Second, in terms of the nature of the sellers, they are mainly state-owned enterprises.** In 48 cases, 45 were state-owned enterprises. Why are they mainly state-owned enterprises? According to an analysis by CRIC, "Land reserve centers only accept the delivery of net land, requiring that the idle land held by real estate companies has no pledges or mortgages... Private real estate companies that have already encountered risks find it difficult to raise enough funds to release the land; central enterprises and local state-owned enterprises with stronger financial capabilities can allocate funds to release the land, thereby achieving the goal of monetizing the land **Third, from the perspective of transfer time, it is mostly concentrated after 2020.** Among the 90 samples, 79 were acquired after 2020, accounting for 88%. The reason may be related to the "excessive land acquisition" by city investment since 2020, as well as a large amount of idle land, as detailed in the main text.

**Q4: How to price?**

Previously, the pricing rule clarified by the Ministry of Natural Resources was "Min{enterprise land acquisition cost, land appraisal price}, and moderately adjusted downwards."

**From the current sample, the overall discount rate for land storage (storage amount/acquisition amount) is 89%.** The lowest comes from Guangzhou, at 52%. However, there are also some plots where the storage price > acquisition price, which may have statistical reasons. According to Zhongzhong, the acquisition price is only the initial transaction price, and some plots have adjustments in floor area ratio and other reasons that lead to additional land price payments, which are not considered in this cost.

**Q5: What progress has been made in other provinces and cities besides Guangdong?**

**First, from the official policy documents,** since the end of 2024, many places such as Jiang'an in Sichuan and Kaifeng in Henan have issued solicitation announcements, but no subsequent progress has been seen so far.

**Second, from the actual issuance data,** according to Wind, as of February 16, 2025, the issuance amount of special bonds for land storage is still 0. It is worth noting that not all special bonds for land storage are used to recover idle land. On February 11, Beijing issued a notice on the "Disclosure of Government Bond Information for Issuance on February 18, 2025," stating that part of the funds are used in the land reserve field. However, upon careful review of the project direction, it was found that this part of the special bonds is mainly used for "primary land development," which refers to the process of organizing, investing, and developing land before its transfer, rather than acquiring idle land.

**Third, special bonds for shantytown renovation continue to be issued, but there is a year-on-year decrease.** According to Wind statistics, as of February 16, 2025, a total of 4.04 billion yuan of special bonds for shantytown renovation have been issued, which is a decrease compared to the same period last year. From January 1 to February 16, 2024, a total of 15.03 billion yuan of special bonds for shantytown renovation were issued.

**Q6: What is the outlook?**

**For cities that have announced plans for repurchase,** according to the Ministry of Natural Resources' notice on "Using Local Government Special Bond Funds to Recover Idle Land" issued in November 2024, "...after reaching consensus with the land user and publicizing without objection, it will be submitted for approval and confirmation by the municipal and county people's governments," meaning that the land intended for acquisition still requires approval and confirmation, and the final acquisition amount is still uncertain.

**For the country as a whole, whether it can be scaled up still needs observation.** According to the Zhongzhong Research Institute, "There are still multiple difficulties in local acquisition of idle land. After research, the main difficulties include unclear special bond quotas, complex adjustment procedures, and difficulties in coordinating land exchange benefits, leading to insufficient enthusiasm from some local governments; low acquisition prices, difficulties in coordination between government and enterprises, low willingness of enterprises to participate, and currently, the acquisition targets are more concentrated in local state-owned enterprises, making it difficult to mobilize other types of enterprises." **In addition, the special bonds for land reserves occupy the newly added special bond quota, which objectively diverts the special bond quota used for project construction.**

**Risk Warning**: Incomplete policy content organization, policy strength exceeds expectations.

**Report Body**

Recently, multiple regions in Guangdong Province have intensively announced plans to use special bonds to repurchase idle land, attracting market attention. This article focuses on six major questions:

## **Q1: What happened?**

**After the Spring Festival, multiple regions in Guangdong Province have intensively released announcements regarding the repurchase of idle land.** According to our incomplete statistics, as of February 14, 13 cities have released relevant announcements, involving a total of 99 pieces of land for repurchase, with a total proposed repurchase amount of 25.4 billion yuan.

**Currently, those announcing proposed repurchases all belong to Guangdong Province**, among which Huizhou (including its subordinate districts and counties) has the largest repurchase scale, announcing a total of 38 pieces of land for repurchase, amounting to 11 billion yuan, followed by Zhuhai, which plans to repurchase 11 pieces of land for 4.1 billion yuan.

Previously, although some provinces and cities had also issued repurchase announcements, they were mainly for solicitation announcements, such as the announcement issued by the Natural Resources Bureau of Ji'an, Jiangxi in December 2024 regarding the public solicitation for the recovery and acquisition of idle land in the city center. However, the recent intensive announcements from multiple cities in Guangdong Province have attracted market attention.

## **Q2: Where does the money come from?**

**Mainly from special bond funds, which have been heavily promoted by previous policies.** In November last year, the Ministry of Natural Resources issued a notice on the use of local government special bond funds to recover and acquire idle land, allowing special bonds to be used for repurchasing idle land. The current announcements from various cities are also based on this document. In January this year, the director of the Guangdong Provincial Department of Finance also mentioned, "For the implementation of policies utilizing special bonds to store land and acquire idle commercial housing, Guangdong is actively researching and promoting, striving for the policy to be implemented and effective as soon as possible."

**What is the scale?** In our sample statistics, the total proposed repurchase amount in Guangdong Province is 25.4 billion yuan. According to the Guangdong Provincial Department of Finance, "In 2024, our province aims to secure an additional central special bond quota of 508.5 billion yuan," **which means the proposed repurchase amount accounts for the newly added special bond quota of** **25.4/5085=5%** **.** 
## **Q3: What are the characteristics of the land intended for repurchase?**

**First, in terms of land type, residential land is the main focus, with other types also involved.** Among the 90 parcels of land with identifiable characteristics that we have surveyed, residential land accounts for 45 parcels, or 50%. The second type is commercial office land, with 27 parcels, accounting for 30%, while other types such as industrial land and commercial-residential land are all below 10 parcels.

**Second, in terms of the nature of the repurchased parties, they are mainly state-owned enterprises.** In 48 cases, 45 were state-owned enterprises, while the remaining were 2 private enterprises and 1 mixed-ownership enterprise.

**Why is it mainly state-owned enterprises? According to CRIC's interpretation,** "The land reserve center only accepts the delivery of net land, requiring that the idle land held by real estate companies has no pledges or mortgages. If there are any, the real estate companies need to release them themselves. Generally, after obtaining the state-owned land use certificate, real estate companies will mortgage the land to banks to obtain development loans, and even projects that have not started construction will mortgage the land to financial institutions for financing. Therefore, real estate companies rarely have idle net land. Private real estate companies that have already encountered risks find it difficult to raise enough funds to release the land; however, central enterprises and local state-owned enterprises with stronger financial capabilities can allocate funds to release the land, thus achieving the goal of land monetization."

**Third, in terms of transfer time, most are concentrated after 2020.** Among the 90 samples, the earliest land acquisition was in 2015, totaling 4 parcels, accounting for 4%; those acquired in 2020 and later totaled 79 parcels, accounting for 88%, with a gradual increase from 2020 to 2023, and a slight decline in 2024.

**In terms of reasons, it may be related to the land acquisition by urban investment companies after 2020 and the large amount of idle land.** Referring to the previous report "Four Questions on Land Inventory," the proportion of land acquired by urban investment companies significantly increased after 2021, rising from 16% in 2019 to 33% in 2023. After "excessive land acquisition," a large amount of land remains idle. According to CRIC's July 2024 report "Nearly 330 million square meters of unstarted land by urban investment companies in 30 cities, what is the geometric space for future construction?" "(2021-2024M5) The area of land acquired by urban investment companies that has not started construction is nearly 330 million square meters, with optimistic estimates suggesting that only 15% will start construction in the future," and "only 20% of the land parcels in urban investment projects have started construction."

## **Q4: How to price?**

**The previously clarified pricing rule is “Min{** **the enterprise's land acquisition cost, land appraisal price}** **, and moderately adjusted downwards.”** Referring to the Ministry of Natural Resources' notice on November 2024 regarding the use of local government special bond funds to recover and acquire stockpiled idle land, “land reserve institutions entrust registered land appraisal agencies to conduct market price assessments for the land parcels to be recovered. The basic price for land acquisition is determined based on the lower of the enterprise's land cost. The city and county's mechanism for coordinating the disposal of stockpiled idle land or the land transfer coordination decision-making body collectively decides on the extent of the basic price reduction based on market conditions, contract performance, etc. After reaching consensus with the land use rights holders and publicizing without objections, it is submitted to the municipal or county people's government for approval and confirmation.”

**From the overall sample, the overall discount rate for land acquisition (acquisition amount/** **land acquisition amount) is 89%** **,** with the highest coming from Foshan at 3.48 times, and the lowest from Guangzhou at 52%.

**Why is the acquisition price for some parcels >** **acquisition price?** There may be statistical reasons. According to the comments from Zhongzhong, the acquisition price here only refers to the initial transaction price. Some parcels have adjustments in floor area ratio and other reasons that lead to additional land price payments, which have not been considered in this cost.

## **Q5: What progress has been made in other provinces and cities besides Guangdong?**

**First, from the official policy documents,** since the end of 2024, many places such as Jiang'an in Sichuan and Kaifeng in Henan have issued solicitation announcements, but no subsequent progress has been observed so far.

**Second, from actual issuance,** according to Wind data, the issuance of special bonds for land reserves peaked in 2018-2019, exceeding 600 billion at one point, but issuance stopped after 2020. As of February 16, 2025, the issuance amount of special bonds for land reserves recorded by Wind is still 0.

However, it is worth noting that not all special bonds for land reserves are used to recover stockpiled idle land. On February 11, Beijing released a notice on the disclosure of government bond issuance information on February 18, 2025, with some funds allocated to the land reserve sector, totaling 11.7 billion yuan. However, upon careful review of the project allocation, it was found that this portion of special bonds is mainly used for “primary land development,” which refers to the process of organizing, investing, and developing land before land transfer, rather than acquiring stockpiled idle land.

**Third, special bonds for shantytown renovation continue to be issued, but there is a year-on-year decrease.** According to Wind data, as of February 16, 2025, a total of 4.04 billion yuan of special bonds for shantytown renovation have been issued (with issuing regions including Shanxi, Hubei, Chongqing, etc.), but this represents a year-on-year decrease compared to January 1 to February 16, 2024 The special bonds for urban renewal have issued a total of 15.03 billion yuan.

## **Q6: What’s the outlook?**

**For cities that have announced repurchase plans,** according to the Ministry of Natural Resources' notice on the use of local government special bond funds to recover and acquire idle land stock in November 2024, “...after reaching consensus with the land use rights holder and publicizing without objections, it shall be submitted for approval and confirmation by the municipal and county people's governments.” This means that the land intended for acquisition still requires approval and confirmation, and the final acquisition amount remains uncertain.

**For the nation as a whole, whether there will be a significant increase still needs observation.** According to the China Index Academy, “There are still multiple difficulties in local acquisition of idle land. After research, the main difficulties include unclear special bond quotas, complex regulatory procedures, and difficulties in coordinating land exchange benefits, which lead to insufficient enthusiasm from some local governments; low acquisition prices, difficulties in coordination between government and enterprises, low willingness of enterprises to participate, and currently, the acquisition targets are more concentrated in local state-owned enterprises, making it difficult to mobilize other types of enterprises.”

**In addition,** **the land reserve special bonds** **utilize the newly added special bond quota, which objectively diverts the special bond quota intended for project construction.**

Risk warning: The policy content is not fully organized, and the policy strength may exceed expectations.

Author of this article: Zhang Yu S0360518090001, Han Gang, source: Yi Yu Zhong De, original title: “Acquisition, Start?”

Risk warning and disclaimer

The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not consider individual users' specific investment goals, financial conditions, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances Invest based on this, and you bear the responsibility

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**