The Ministry of Housing and Urban-Rural Development interprets the new policy: encouraging the development of multi‑level parking facilities.

For some time now, the issues of on‑street parking and parking shortages in residential communities have drawn widespread attention. The Ministry of Housing and Urban–Rural Development and the Ministry of Natural Resources have issued the “Notice on Further Improving Policies for the Planning, Construction, and Land Use of Urban Parking Facilities” (hereinafter referred to as the “Notice”), which sets out relevant provisions to refine policies related to the planning, construction, and land use of urban parking facilities.

In response, Liu Heming, Inspector with the Urban Construction Department of the Ministry of Housing and Urban–Rural Development, stated that to improve the current situation, on the one hand, it is necessary to maximize parking capacity within limited space through thoughtful design; on the other hand, implementing franchising, enhancing information‑based and intelligent technologies, and elevating the professional management of parking facilities can help alleviate the challenge of finding parking.

　　To ensure the rational allocation of parking facilities, encourage private-sector participation, and gradually alleviate parking shortages, the Ministry of Housing and Urban–Rural Development, in collaboration with the Ministry of Land and Resources, recently issued a notice to strengthen oversight and management of the parking sector across planning, construction, and operational aspects.

　　The Notice emphasizes the need to strengthen the planning and regulation of urban parking facilities. It requires cities to, in accordance with the overall land-use plan, the urban master plan, and the urban comprehensive transportation system plan, and based on the actual conditions of key areas—such as older residential neighborhoods where the supply-demand imbalance for parking is particularly acute—to rationally determine the appropriate scale of parking infrastructure.

“One of the primary functions of urban planning is to address the question of how many parking facilities a city should build,” said Liu Heming. From a macro perspective, the scale of parking infrastructure should be determined based on actual conditions such as population and land use, as well as the city’s future development needs. For example, in cities with populations under 500,000, the total number of parking spaces should be set at 1.1 to 1.5 times the existing vehicle stock; in cities with populations exceeding 500,000, the total should be 1.1 to 1.3 times the vehicle stock, with an appropriate margin built in.

　　Liu Heming pointed out that, in terms of parking‑lot development, the key is to ensure the safety and reliability of parking facilities and to enhance their utilization efficiency. “We should address parking needs primarily through on‑site provision; where appropriate, urban public parking lots may be developed, with locations sited close to demand, distributed across the city, and designed for ease of use, ideally within a service radius of no more than 300 meters. In addition, on‑street parking spaces should be provided—for example, time‑limited or zone‑specific spots can be designated around older residential neighborhoods,” Liu Heming said.

　According to available information, in developed countries abroad, the ratio of parking spaces generally remains below 5%. “Given the current scarcity of parking in China, we aim to keep this ratio below 10% at the planning stage, resulting in an approximate allocation of 8:1:1 among on‑site parking, public parking, and on‑street parking,” added Liu Heming. He further noted that, from a technical standpoint, the focus is on rational design to promote the development of multi‑storey and automated parking facilities, thereby maximizing parking capacity within limited space.

　　To address the challenge of securing land for parking facilities and to promote the economical and intensive use of land, the Notice sets out specific provisions covering layered development, standardized land supply, and the revitalization of existing land reserves. The Notice clarifies that urban underground space may be fully leveraged for the tiered planning of parking facilities; for example, public parking lots can be sited beneath urban roads, plazas, school playgrounds, park green spaces, as well as public facilities such as bus terminals and waste‑collection stations. The land‑use designation of these parcels shall be compatible with the intended use of social parking lots, thereby fostering the multifunctional utilization of urban construction land.

　　To address the challenge of attracting private capital to parking‑lot development, the Notice also sets out specific policies across multiple fronts:

　　 Encourage the industrialization of parking. , provided that the land use designation remains unchanged and the number of parking spaces is not reduced, up to 20% of ancillary commercial space may be permitted.

　　 Encourage the over-provision of parking facilities. For newly constructed buildings that provide parking facilities exceeding the prescribed parking‑space allocation standards, as well as for public parking lots built concurrently with new projects and open to the public, a certain floor‑area‑ratio incentive may be granted. Furthermore, for underground public parking facilities constructed in excess of the required parking‑space allocation standards, no land‑use fee shall be levied on the portion exceeding the standard.

　　 At the same time, it clarifies that the planning approval process for parking facility construction will be streamlined, and stipulates that the owner of a parking facility may, in accordance with the law, apply to the real estate registration authority at the location of the facility to carry out the relevant real estate registration procedures. 。 “We place particular emphasis on tailoring measures to local conditions and avoiding a one-size-fits-all approach. Many specific, detailed policies explicitly require city governments to conduct research and make determinations based on their actual circumstances,” Liu Heming pointed out. While providing policy support for parking‑lot development, the Notice also underscores the need to strengthen planning, construction, and land‑use oversight of parking facilities, setting forth concrete requirements for post‑allocation management of parking‑lot land, post‑construction administration, operational management, and enhanced industry regulation.