China boosts land and housing development


China Housing & Land Development, Inc., today reported a favorable new policy from the Xi'an municipal government that should help continue the growth rate of the Xi'an housing market by making homes more available and more affordable for Xi'an citizens and by providing support and improvements to the real estate developers.

The Xi'an municipal government's new policy consists of three broad actions, which will be in effect from now through the end of 2009. First, the Xi'an government is providing subsidy discounts to consumers for housing purchases that will vary according primarily to the size of the home. Buyers will receive subsidy discounts on their purchase prices, scaling from a 1.5 percent subsidy on small homes, 1.0 percent on medium homes, and 0.5 percent for larger the homes.
Second, the Xi'an city government is relaxing the qualifications for resident housing loan applications, increasing the amount of RMB available for each loan, and reducing the interest rates on those loans.

And third, real estate developers will be able to receive subsidies and support on loans and land rights purchases, reductions in fees and taxes, and streamlined project planning, approval, and oversight processes by the city.
Mr. Pingji Lu, Chairman and Chief Executive Officer of China Housing & Land Development, Inc., said, "The Xi'an municipal government has taken prudent actions to support the continued growth in the Xi'an real estate development market through next year. The benefits from the added stimulus are expected to be reinforced housing demand due to better buying power for home buyers through attractive prices, payment terms, and interest rates. The result should be continuing strong growth in the real estate development market and in the tax and fee income it generates for Xi'an.

"In our second quarter earnings conference call, we mentioned that the city's economic growth rate in the second quarter 2008 was 16 percent over the second quarter of 2007; housing prices were up about 7.5 percent in the second quarter 2008 over the first quarter of 2008; and while the real estate transaction volume was off 26 percent in the second quarter 2008 from the second quarter 2007, the transaction volume between the first quarter and second quarter of 2008 was up 16 percent sequentially.

"We expect to benefit directly from the reinforced consumer demand and from the new real estate development allowances and process changes, especially in our Tsining JunJing II housing project now under construction, and in one of our Baqiao projects, Oriental Venice Town I, which is expected to begin pre-sales during 2009. The additional stimulus is a welcome boost to Xi'an's real estate development market through this year and next."
About China Housing & Land Development, Inc.

Based in Xi'an, the capital city of China's Shaanxi province, China Housing & Land Development, Inc., is a leading developer of residential and commercial properties in northwest China. China Housing has been engaged in land acquisition, development, and management, including the sales of residential and commercial real estate properties through its wholly-owned subsidiary in China, since 1992.

China Housing & Land Development is the first and only Chinese real estate development company traded on NASDAQ.
By leveraging its strong relationships with China's local state authorities, China Housing & Land Development has been able to capitalize on the supply of available land and develop residential and commercial properties, further increase China Housing's brand recognition, and outperform its competitors in medium size residential and commercial real estate developments in greater Xi'an.

Safe Harbor
This news release may contain forward-looking information about China Housing & Land Development, Inc., which is covered under the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as believe, expect, may, will, should, project, plan, seek, intend, or anticipate or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Housing & Land Development's future performance, operations, and products.

Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Actual performance results may vary significantly from expectations and projections. Further information regarding this and other risk factors are contained in China Housing & Land Development, Inc.'s public filings with the U.S. Securities and Exchange Commission. All information provided in this news release and in any attachments is as of the date of the release, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

China Housing & Land Development news releases, project information, photographs, and more are available on the internet at www.chldinc.com.

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