From the specific point of view the city, according to Centaline Property Research Center statistics, the first eight months, the number of cities with land transfer revenue of more than 10 billion reached 39, many cities saw revenues double. Among them, Hangzhou land transfer payments rose 3 times, Suzhou, Nanjing, Hefei, Wuhan, Zhengzhou, Shenzhen, Ningbo and other cities all doubled.Due to reliance on land finance, governments don't want prices to drop:
...Despite the city did not disclose the full details, but the reporter through the relevant research institutions to provide the data, using the convention of land calculated financial dependence (dependence = urban land finance land transfer / City general revenue × 100%) found land transfer prices depend city index rose sharply.
Suzhou, for example, land-dependent exponential first eight months up to 82.6%, while in 2015 this index was 40.58%. Centaline Property Research Center data show that, Suzhou land transfer for the first eight months of 96.67 billion yuan, the land market alive.
The current land Wuxi in August to sell over ten billion land-dependent index of 22.5%, compared to 6.91 percent in 2015 to improve a lot. In addition, Hangzhou, Hefei, Nanjing and other cities dependent index of more than 50%.
"Reliance on land finance, makes it hard for first- and second-tier cities high prices to fall." Ren Zeping said to analysts.As with other reforms, China was supposed to be moving beyond land finance and the real estate slowdown in 2014 made it clear local governments cannot afford investment without land revenue. Yet here we are heading into 2017 and the situation is worse than before...
iFeng: 各地土地财政依赖度：苏州翻倍 杭州合肥南京超50%