China's land revenue falls 13% in hit to local governments

2023 marks second straight year that critical source of income falls

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A decline in new condominium development in China stemming from slumping sales has put a dent in local land-use rights transactions. (Photo by Iori Kawate)

IORI KAWATE, Nikkei staff writer

BEIJING -- Revenue from the sale of land-use rights in China, a critical source of income for local governments, fell by 13.2% in 2023 as the country's deep real estate recession hit municipal finances hard.

The data, released Thursday by China's Finance Ministry, shows that sales dipped to their lowest since 2017. Sales declined for a second consecutive year for the first time since 2012, the earliest data available.

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