China on Wednesday unveiled a new policy package aimed at lowering land-use costs and revitalizing existing buildings to expand the supply of affordable elderly care services. The measures, jointly issued by the Ministry of Natural Resources, the Ministry of Civil Affairs, and the National Health Commission, aim to address high operating costs and limited supply in the sector.

By the end of 2024, China's population aged 60 and above reached approximately 310 million, accounting for 22 percent of the total population.

The 18-point plan focuses on three key areas: reducing costs, improving the utilization of existing land and buildings, and strengthening policy implementation.

To ease financial burdens, local governments are now required to ensure land supply for nonprofit elderly care facilities through direct allocation, exempting them from land conveyance fees. More flexible land-use options are encouraged among for-profit projects, including long-term leasing and "lease-before-transfer" arrangements. Local authorities may also allow land premiums to be paid in installments over a two-year period.

The policy also promotes converting idle urban and rural spaces into elderly care facilities. In urban areas, small or underutilized plots in older residential communities can be repurposed. Buildings converted for elderly care use may retain their original land-use designation for up to five years without incurring additional charges. In rural areas, priority will be given to utilizing idle collective land, while collective for-profit construction land may be leased or transferred for care projects.

The new measures were released on the basis of a 2019 land-use policy and represent an upgraded approach, the authorities said. The next phase will focus on guiding local governments, coordinating inter-agency efforts, and tracking the policy's impact nationwide.

The three ministries emphasized that they will promote the expansion of inclusive elderly care services, requiring new urban areas and residential projects to simultaneously construct supporting elderly care service facilities in accordance with planning standards.

To ensure effective implementation, a coordinated, multi-department supervision system will be established. Land designated for elderly care facilities will be incorporated into a unified national spatial planning database for dynamic monitoring, and unauthorized land-use changes will be strictly prohibited.