Beijing plans to build up to 1.5mn new homes

The Beijing municipal government plans to increase land supply over the next five years in a bid to further cool residential property prices and satisfy housing needs. From 2017 to 2021, Beijing plans to build up to 1.5 million housing units on land parcels covering a combined 60 million square meters, equivalent to more than 8,000 soccer fields. The plots of land, located in the city’s southern and northern suburban areas, will account for more than 70% of the total land allocated for residential building. The move represents the latest adjustment to land supply – the average property price in Beijing shot up more than 63% to 60,738 yuan ($8,820) per square meter from October to February this year.  The ample housing supply introduced by the government’s plan will help ease tension between housing supply and demand and prevent prices from further increasing, Zhang Dawei, chief analyst with Centaline Property, told Caixin.