China will stop land supply to new high-land-cost villa projects in 2006, and make strict inspection on illegal utilization of land resources, said the Beijing News on Thursday. Real estate developers were suggested to give up plans to build villas in the coming year, said the news paper, citing sources from a real estate forum held in Beijing Wednesday.

Governmental statistics show that a total of 37,000 hectares lands have been used for residential houses in the past three quarters this year, with 30 percent for commercial houses, 10 percent for low-price affordable houses and 0.16 percent for villas and luxury flats.

But spotcheck shows the actual proportion for approved land utilization in villas and flat projects is higher than the registered 0.16 percent, said Shu Kexin, deputy director of the Land Utilization Administration of the Ministry of Land and Resources.

Shu said the ministry has notice the situation and soon will launch measures to inspect all villa and flat projects nationwide, with the illegal utilization to be punished seriously.

Shu said the Chinese government is greatly concerned with the tense land supply in the real estate sector, especially targeting on the blind approval of lands for villa and golf court projects.

Shu said the Chinese government will tighten macro control over land resources in 2006, properly increase land supply to projects of ordinary commercial houses and low-price houses.

In addition, the government will issue new policies to encourage more real estate developers to launch housing projects in the rural areas, a step to promote building a new socialist countryside in China, said Shu.

(Xinhua News Agency December 29, 2005)