China Limits Land Sales

SCMP: China to limit land available for homes in cities with property oversupply
China will reduce or stop issuing land for new residential housing projects in areas where there is a supply glut, the latest in a series of measures aimed at clearing a property overhang weighing on the economy.
This looks like the closing of a barn door once the horses are gone. Cities with high prices, such as Beijing, are running out of prime land. Many third- and fourth-tier cities already have budget problems because land sales all but dried up in late 2014 and throughout 2015. How many cities have high inventory and robust land sales? According to reports such as 一线城市土地价涨四线城库存严重 开发商布局二、三线 from a month ago, the developers are concentrating on second- and third-tier cities. If there's any effect from this rule change, that is where it will be felt. No word on how cities are supposed to make up for lost revenue.

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