[photopress:property_small_apartment.jpg,full,alignright]An industry report released by the Shanghai Real Estate Association concludes that while nationwide investment into the real estate industry grew rapidly over the past year, domestic supply of small- and medium-sized apartments still remained inadequate almost two years after the 70/90 policy was introduced.
The report, conducted annually by the China Real Estate Association, said the speeds of sales of small- and medium-sized apartments indicated a great shortage of such products.
The report said, ‘Statistics compiled in 40 major Chinese cities between January and December last year has found that approved space for presale and registered sold space for apartments below 90 square meters in size both accounted for about 25% of the total, which means a full digestion of such products through the past 12 months,’
In May 2006, the Ministry of Construction announced that the combined GFA (gross floor area) of all residential units below 90 square meters in size should account for more than 70% of the total GFA of a project.
The policy, applied to residential developments that were given approval to commence work after June 1, 2006, was designed to raise the supply of small- and medium-size homes and discourage construction of luxury houses.
In Shanghai, less than ten ’70/90′ projects have been released to the market.
Source: Shanghai Daily