[photopress:Beijing_10.jpg,full,alignright]A few weeks ago, the Beijing Municipal Commission of Urban Planning released a draft plan for the city’s housing construction for 2006-2010. After discussion and amendments the formal plan has now been published.
Missing is the government buy-back scheme which said budget housing could only be sold back to the government and not sold on the free market. In the final document that becomes ‘to research and establish correlative inter-circulation system relating to affordable housing’ and none one seems quite sure what the inter-circulation system will be.
Another change is that one-fifth of the affordable housing will be set aside for rental rather than for sale as was suggested.
The government is also looking into the tax policy for larger apartments and these may be subject to comparatively high taxes.
Gu Yunchang, vice president of China Real Estate Association said, ‘The government should properly enlarge the supply of cheap housing, and explore new methods, like introducing caps on the pricing of affordable housing.’
According to the plan, Beijing will provide 210,000 affordable housing units to meet the demand of a vast number of middle and low-income families during the 2006-2010 period.