Following the establishment of reform and market economic system, the land market in Nanjing city develops gradually to a right direction. This paper reviews the Chinese land market construction progress, studies the three stages in Nanjing land market development, nonmarket, paramarket and marketization, summarizes the basic features, discusses the current issues in the land market in Nanjing city, aiming at offering an approach to the land market construction in Nanjing city.

Following the rapid economic development, more and more rural lands have been expropriated for a construction purpose, so the land compensation is paramount for those landless farmers. Although the uppermost price limit on land compensation has been canceled and the same-land-same-price is carried out gradually, big gaps exist compared to market price. This paper, based on a theoretical study and a case study, establishes a relation model to measure the prices in variable graded expropriated lands, compares with the existing land expropriation prices which is verified to be illogical, and presents some suggestions.