Changes to China’s rules regarding the use of land in rural areas recently proposed by the Chinese government could provide a boost to the country’s property market and improve the rights of rural residents, analysts told Caixin.
The reforms, which were suggested by Land and Resources Minister Jiang Daming during a work conference Monday, would make it easier for developers to build rental housing in rural areas.
The new rules would also allow rural residents to retain the rights to their land even if they move to the city, an important issue that has prevented many people from moving to urban areas in search of higher incomes.
According to Yan Yuejin, chief analyst at E-House China, the minister’s comments suggest that the government wants to increase the amount of land available for rental housing. President Xi Jinping listed the development of the rental market as a policy priority in December.
Thirteen cities, including Beijing and Shanghai, joined a pilot program in August that allowed them to use rural land owned collectively by village committees for rental housing development.