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More than 435,000 square meters of land in Longgang and Bao'an districts will be reclaimed by the Shenzhen municipal government after delays in beginning 16 major construction projects.

The decision was made by a government meeting Wednesday morning. Shenzhen has witnessed a continuous hike in housing prices, partly caused by a shortage of land.

A regulation requires the government to take back plots of land purchased by developers if left idle for more than two years, in an effort to prevent developers from hoarding them, a practice believed to have aggravated the shortage.

The government has re-examined 369 construction projects approved in Longgang and Bao'an between 2003 and 2005. Of these, construction work has begun on 116.

The two districts will urge the companies in charge of 219 projects to complete the necessary certification and finish the projects before a given deadline.

Firms in charge of the 16 projects that have been canceled will be given an interest-free refund of their money paid for the land contracts.

Another 19 projects being re-evaluated will need to submit their applications to environmental protection and industrial administration authorities before April 20. Government departments have been ordered to reject or approve the projects before the end of this month.

(Shenzhen Daily April 13, 2007)