China’s land use rights transfer revenue fell 16% year-on-year

The 2024 fiscal revenue and expenditure report released by the Ministry of Finance of China on January 24 showed that the land use rights transfer revenue relied on by local governments fell 16.0% year-on-year. It has fallen for three consecutive years, hitting a new low since 2016. The real estate downturn has dealt a severe blow to local finances.

The decline has widened from 2023 (13.2%). China’s land is owned by the state, and local governments transfer land use rights to real estate developers. As housing sales continue to be sluggish and new development projects have decreased, land use rights transactions have also decreased.

General public budget revenue, equivalent to general accounting, increased by 1.3%. Among them, tax revenue fell by 3.4%, the first time in two years that it was lower than the previous year.