The General Office of the Ministry of Land and Resources ("MLR") has recently issued the Technical Norms for the Land Valuation in the Assignment of State-owned Construction Land Use Right (the "Norms"), with effect from April 9, 2018.
The Norms apply to the land valuation involved in assignment of the right to use State-owned construction land within the territory of China, and the valuation that is necessary to determine the additional land payment caused by adjustments to land use conditions, appreciation of land value or for other reasons. And the Norms apply mutatis mutinies to the land valuation in relation to lease of the right to use State-owned construction land or transfer of the right to use collective construction land on the market according to the law. Moreover, the Norms clearly state that the land to be assigned shall be valued by adopting at least two different methods, one of which is selected from the income method, the market comparison method, or the residual method, and the other is selected from the cost approaching method, or the coefficient modification method based on the publicly announced land price. Furthermore, the Norms state that where the minimum price standard for assigning land by agreement, the minimum price standard for assigning land for industrial uses, or any other minimum price, is involved, the land valuation result, as well as the corresponding minimum price standard, shall be presented in the part "Valuation Result" on the land valuation report.