[photopress:lowcosthousing.jpg,full,alignright]China will adopt new housing policies by the end of the month to favour middle- and low-income urban residents. One important adjustment is to divide current affordable apartments into two types: sale and rent.
Cities will be encouraged to construct and lease out low-cost houses for minimum earners. Moreover, local governments will provide allowances for these tenants on rental fees.
On May 29, nine cabinet departments jointly issued an eight-article announcement:
Cities at all levels must work out concrete plans on housing construction before the end of September.
One controversial issue for real estate developers and insiders is that small apartments no bigger than 90 square metres will have to account for 70 per cent of new homes being built.
Meng Xiaosu, who is chairman of China Real Estate Development Group, commenting on that said, ‘Low-priced apartments are welcomed by the mass of people who participate in the distribution of social resources by purchasing new houses. But the small size is just the eye-catching part of the problem.’
Meng said that currently the proportion of investment into economically affordable housing is about 5 per cent of the total, which is far short of the increasing demand for new houses from middle- and low-income families. He suggested, ‘The ideal proportion of economically affordable apartments in China’s real estate market should surpass 30 per cent.’
Source: China Daily