On July 23, 2026, the Ministry of Finance amended the “Operational Directives for Tender Leasing of National Non-Public Real Estate” to promote the utilization of properties acquired through urban renewal and provide businesses with more flexible long-term land-use opportunities.
Key Amendments and Comparison
- Extended Lease Terms (Up to 20 Years): Under the old rules, re-tendering was required upon lease expiration (or limited to a single renewal). For new tenders announced on or after July 23, 2026, eligible lessees may renew up to 3 times without re-tendering, enabling a maximum total term of 20 years.
- CPI-Linked Rent Adjustments: Renewal rent moves from a fixed rate to an indexation model linked to the Rent CPI (rent will not fall below the original rate if the index drops).
- Performance Bond Adjustments: Lessees must top up the performance bond to match two months of the newly adjusted rent upon renewal.
Practical Considerations & Risks
- Inflation-Driven Rent Escalation: While long-term occupancy is guaranteed, businesses must factor potential rent increases into their long-term financial planning.
- Stricter Exit and Penalty Requirements: Lessees are mandated to submit a Soil Pollution Inspection Report upon surrender. Failure to vacate on time incurs a holdover fee equal to twice the daily rent.
While the new regime offers advantages for long-term use, it introduces cost and compliance risks. Businesses should carefully identify whether new or old rules apply to their leases and weigh the costs against the risks to make the best investment decisions.














