After a five-year hiatus, the scale of the application and issuance of self storage special bonds has continued to expand. The latest report released by the Zhongzhi Research Institute shows that according to incomplete statistics, there are nearly 3000 cases across the country that have announced plans to use special bonds to recover and purchase idle land, with a total area of over 133 million square meters and a total amount of over 350 billion yuan. Reporters have found that since March, the pace of public announcements in various regions has continued to accelerate. In April, over 1500 parcels of land were publicly announced, exceeding the total amount of public announcements from January to March, with a total amount exceeding 170 billion yuan. Regarding the acceleration of the application for land reserve special bonds, Wu Zhiwu, Senior Director of the R&D Department of China Securities Pengyuan, analyzed to reporters that in 2024, the Ministry of Natural Resources issued a notice on the use of local government special bond funds to recover and acquire idle land. In March of this year, the Ministry of Natural Resources and the Ministry of Finance jointly issued a notice on the use of local government special bonds to support land reserve, greatly improving the enthusiasm of local governments to apply for special bonds to recover and acquire idle land. Wu Zhiwu stated that since the beginning of this year, fiscal policies have been pushed forward, local bonds have been issued and used early, and physical workloads have been formed as soon as possible to achieve stable economy, employment, and expectations. From January to April this year, the scale of newly issued local bonds increased by 53.8% year-on-year, and the issuance of newly issued special bonds increased by 64.8% year-on-year. In this context, local governments have accelerated the issuance of new special bonds, including the acquisition of idle land. Hu Yangrui, Senior Director of International Public Financing Rating at Fitch Ratings Asia Pacific, told reporters that the land reserve special bond is mainly used for idle land recovery and land reserve, and can also be used for developing land for sale or purchasing existing commercial housing to convert into affordable housing. According to the Enterprise Early Warning Data, from the beginning of this year to May 21st, the total amount of land storage special bonds issued reached 96.4 billion yuan, accounting for 7.5% of the newly added project special bonds. The industry believes that issuing special bonds to reclaim idle land can supplement the liquidity of real estate companies, optimize land resource allocation, promote land development, and ultimately drive the development of related industries. Currently, the pricing of storage and the benefits to enterprises are topics of great concern to all parties. Li Yujia, Chief Researcher of the Housing Policy Research Center of Guangdong Urban and Rural Planning Institute, analyzed to reporters that the real estate market was relatively hot around 2021, and enterprises acquired more land. At that time, some plots of land that were sold no longer have the conditions for development. Local governments can reduce land resource waste and supplement enterprise liquidity by reclaiming these idle lands through special bonds. The government can better match the current market environment by reclaiming idle land and adjusting planning conditions before selling it. According to statistics from the Zhongzhi Research Institute, about 50% of the publicly announced projects have a ratio of proposed storage prices to transaction prices between 0.8 and 1.0, about 30% have a ratio of 0.9 to 1.0, and about 18% have a ratio of proposed storage prices to transaction prices between 0.7 and 0.8. The vast majority of the land currently planned for acquisition and storage belongs to local state-owned enterprises, accounting for over 80%. Poly, OCT and other state-owned enterprises have multiple plots of land planned to be acquired and stored. In terms of private enterprises, multiple plots of land from companies such as Xincheng and Junfa are planned to be acquired and stored. Li Yujia stated that state-owned enterprises play a bottom line role in the land market. The government can use special bonds to recover idle land in their hands, which can release some funds and support them to better fulfill their social responsibilities, further promoting and expanding investment. Regarding the expansion of benefits for enterprises, insiders from real estate companies suggest that while promoting the issuance of land storage special bonds, a special loan center for collection and storage can be established under policy banks to collect and store inventory land and commercial housing, and a certain proportion of targeted support can be provided to private enterprises. The Zhongzhi Research Institute believes that in the future, central and private enterprises can strengthen communication and negotiation with local governments through land exchange, "collection and adjustment of supply" and other means, accelerate the revitalization of idle land, improve their own land reserve structure, and help consolidate the stable situation of the real estate market. (New Society)