Beijing Mayor Guo Jinlong dismissed claims that the municipal government’s drive to build more affordable housing will dampen the city’s real estate market.
The municipality unveiled plans for cheaper homes at the end of 2008 to provide a total of 8.5 million square meters of price-restricted housing in 2009.
Guo Jinlong said, ‘The affordable housing project targets the low-end market, which will not impede the development of the city’s high-end real estate market. As the urban area is limited, the real estate market is expected to boom.’
The city, with a resident population of 16 million, covers 16,000 square km, of which more than 10,000 square km are mountainous regions.
Political advisors with the real estate sector have voiced warnings that the municipal government’s affordable housing strategy could squeeze out realty investment.
Source: Window of China