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China

Tier-1 (Shanghai/Shenzhen) · CNY
Corpus dated July 2026
For landowners

Urban land in China is state-granted, so 'landowner' JVs are really project-company partnerships or village-collective renewal deals — both run on relationships and escrowed presales.

For developers

Rongjilv is contractual, not negotiable post-grant. LAT 30–60% dominates the tax stack; presale escrow supervision shapes cash flow. Currently a domestic-capital game.

Build cost (USD/m²)
$8001,400
Sale prices (USD/m²) · Mid-market
$6,00011,000
Sale prices (USD/m²) · Prime
$15,00028,000
Typical owner share
4060%
of GDV (land grant premium)
Title system
State-owned urban land; granted land-use rights (70-yr residential) + building ownership in unified national e-registration.
Foreign ownership
Foreign individuals: one self-use home after ~1 yr local work/study; foreign developers need FIE approval — land via public auction; market effectively domestic.
Authorities
Municipal Planning & Natural Resources bureaus under MNR; MOHURD for construction.
Zoning metric
Plot ratio (rongjilv) fixed in the land-grant contract — tier-1 residential ~1.8–3.5; sunlight-spacing and green-ratio coefficients.
Height control
MOHURD 2021: >250m restricted, >500m banned; sunlight spacing dominates residential; typical ≤80–100m.
Building code
GB 55xxx mandatory general codes, GB 50011 seismic, GB 50016 fire.
Approvals & timeline
Land grant → planning permits → construction permit → presale permit (~25%+ built); presale proceeds escrow-supervised. (~6–12 months)
Transfer taxes & fees
Deed tax 1–3% (buyer); developer VAT 9% + Land Appreciation Tax 30–60%; land premium is the core government take.
Foreign capital
SAFE capital controls both ways; QFLP niches; most foreign developers exited; policy pro-stabilisation.

Common JV structures

Land-as-Equity SPV

2050%

Owner conveys land into a new project company at an agreed value; that value becomes the owner's equity stake. Developer and investors contribute cash and expertise; profits distribute through a waterfall (capital back → preferred return → promote).

Development Management + Profit Share

1030%

Owner keeps ownership and funds the project; the developer acts as development manager for a base fee (2–5% of cost) plus a promote (10–30% of profit above a hurdle). Effectively a JV without a land transfer.

BOT / DBFOT Concession

215%

Mostly for public or institutional land: the developer designs, builds, finances and operates for 20–50 years, paying an upfront premium and/or revenue share, then transfers the asset back.

Risk flags
  • Multi-year price decline + developer credit distress
  • Demand softness despite eased curbs (2025-26)
  • Capital controls on exit

Whitelist financing gates project credit.