GENERAL
China Land Transfer Fees to Exceed RMB 2 Trillion This Year
The amount of land transfer fees collected by local governments in China is expected to surpass RMB 2 trillion this year, making such taxes a major source of revenue for municipalities. 
As land prices have increased over the last ten years, the amount collected by local governments on their percentage of land deals has risen accordingly. Government data show that from 2001 to 2003, land transfer fees totaled RMB 91 million, representing 35 percent of local government revenues with an average value of just over RMB 30 million per year. In 2004, this figure rose to RMB 60 million. In 2009, land transfer fees rose to RMB 1.5 trillion, accounting for 46 percent of municipal revenues on average. However, in some cities and counties, the proportion of government revenue derived from land transfer taxes already surpasses 50 percent and in some cases has gone as high as 80 percent of local government income.
Metro Line 7 Adds Three More Stops in Baoshan
As of December 28th, three new stations were added to Shanghai’s Metro Line 7 as part of its northern extension. The three new stops are Gucun Park Station, Luonan Xincun Station, and Meilan Lake Station, all of which are in Baoshan district. Although the metro stops are open, however, the other public transport facilities surrounding the three metro stops are not ready yet. At present, Line 7, which connects Shanghai University Station to Huamu Station, carries an average of 400,000 passengers per day. Through the line’s interchange with the heavily travelled Line 8, it is already seeing rapid growth in ridership.
RESIDENTIAL
Wuxi Raises RMB 1.56 billion From Residential Land Sales
On 27th December, the Wuxi government offered eight plots of land scattered in Beitang District, Hubin District, and Wuxi New District of the city for public tender. The aggregate land area of the eight plots totalled 739,800 square metres. Among the plots auctioned off, an 87,903 square metre site was purchased by an unknown bidder for RMB 1.56 billion, with an accommodation value of RMB 7,098 per square metre. The sale price represented a 13.46 percent premium over the auction’s starting price. The plot is located at the intersection of Zhongnan West Road and Lixi Road, has a permitted plot ratio of 2.2 to 2.5, and is granted for residential use.
COMMERCIAL
Zhejiang Yiwu to Build a 260-Metre Skyscraper
On 27th December, Neoglory Group, a private company specializing in jewelry, accessories, real estate investment laid the foundation for the new 260-metre tall Zhejiang Yiwu World Trade Centre. According to the project plan, this new tower will be the first of its kind for YIwu as well as for all of Zhejiang province. The development is located in the Yiwu International Trading and Finance Zone, and has a total site area of 49,500 square metres, with a total developmental gross floor area of 472,000 square metres. The World Trade Centre will be a mixed-use project incorporating a five-star hotel in the main tower, three blocks of serviced apartments, a 150 metre high-end residential tower and approximately 118,000 square metres of retail space.
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