Land sales slowed sharply in China last year, according to industry reports that highlight the deepening woes of debt-laden local governments that depend on land auctions for vital revenue.
While the falling sales are still far from reaching crisis point, analysts say, authorities are under mounting pressure to choose between costly help for the worst-hit cities and an unpalatable relaxation of its policies aimed at preventing a dangerous property bubble.
Nearly 900 land auctions failed in 2011, about three times more than in 2010, Centaline, a property company, said. At the same time, government revenues from land sales fell 13 per cent in 130 big cities to Rmb1,900bn ($300bn), according to the China Index Academy, a property research group.