Inflation-adjusted home prices in China have fallen below where they started two decades ago, and the fiscal fallout is hitting local governments even harder than developers.
But having an expected time the city can have the land back do helps with planning with development, or modernize run down buildings.
It being a lease means you also can very easily plan ahead your maintenance by funding it through the sale of the land upfront, not that much difference than collecting property tax except it is actually valued based on the land not the building on top of it.
It’s better if land is not owned by an estate forever.
But having an expected time the city can have the land back do helps with planning with development, or modernize run down buildings.
It being a lease means you also can very easily plan ahead your maintenance by funding it through the sale of the land upfront, not that much difference than collecting property tax except it is actually valued based on the land not the building on top of it.
It’s better if land is not owned by an estate forever.