Supply of government-owned land for construction in China dropped last year, with land allocated for real estate development affected most, according to the Ministry of Land and Resources (MLR).

In 2015, state-owned land plunged by 12.5 percent year-on-year at 534,000 hectares. On the other hand, the use of land for real estate development slumped by nearly 20.9 percent to 120,000 hectares. Meanwhile, land designated for industry, mining and warehouses plummeted to more than 15 percent, while infrastructure allocation fell over 7 percent, MLR reported.

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The decline in real estate land comes as China's property sector is experiencing a supply glut. Investment is slowing down as investors are currently attempting to dispose existing homes, according to China Daily. To address this issue, authorities have announced plans such as chopping down the minimum down payment requirement and slashing off property transaction taxes.

The most recent home price data suggests an urban sprawl in the housing market in China, with soaring prices in first-tier cities like Shenzhen and Beijing, whereas small cities are being placed under great pressure. The latest MLR findings revealed that at the end of 2015, commercial and residential real estate prices in more than 100 cities were up by 2.7 and 3.9 percent, respectively, compared with the previous year.

According to the 2015 report of the National Bureau of Statistics, there are over 700 million square meters of unsold residential and commercial properties in China - a 15.6 percent increase from 2014.  Authorities have announced plans to boost China's housing economy as the real estate market investments significantly affects more than 40 other sectors, including cement and furniture.

Tagsreal estate, urban sprawl, china, commercial lands, industrial lands