Land expropriation and demolitions have given rise to prominent problems, including public petitions, massive protests and riots, according to Xu.
"The non-standard transfer of construction land under collective ownership has sparked a great deal of conflict and disputes," he said.
The government will accelerate land acquisition reforms, standardize the transfer of construction land under collective ownership and promote the construction of a unified urban and rural land market, Xu said.
He said the government will consider setting up a unified real estate registration system by identifying and registering construction land under collective ownership, farmers' housing and contracted sites.
About 86 percent of land under collective ownership was identified and registered as of October, the report said.
To ensure grain security, China has set a "red line" to guarantee that its arable land never shrinks to less than 1.8 billion mu (120 million hectares). But the country is facing growing challenges due to rapid urbanization and massive infrastructure construction.
The country is already edging dangerously close to the tipping point, with just 1.82 billion mu available as of 2011, figures from the report showed.
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