According to the Land Reserve Center’s official announcement, the 2010 land transfer fees in Beijing, as of Dec. 30, 2010, totaled 163.672 billion yuan (approximately US$24.8 billion), an increase of 76.37 percent compared with 2009. Beijing has displaced Shanghai as the city with the highest amount of land income. As a result of the tighter regulations in 2010, Beijing’s property market trading volume (number of properties) was reduced, but housing prices did not decline, rising instead over 40 percent.
Does this next bit sound too familiar?
Chinese media reported that the land transfer fees in some cities have exceeded more than half of the local regime’s annual revenue. The significant increase in these fees indicates that the local government's dependence on land income is deepening.
The government's curbs aren't working because the government no longer controls liquidity. Central Planning is a mirage.
Pop some popcorn, prop your feet up, and settle in for 2011's episode of You Live in Interesting Times.