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New Housing Policy will be Adopted in China China is expected to adopt new housing policies by the end of the month to favor middle- and low-income urban residents, officials and insiders said over the weekend.
One important adjustment is to divide current economically affordable apartments into two types: those for sale and those for rent. This will create the backbone of the nation’s housing guarantee system in the future, said an official with the Ministry of Construction. Different from past policies, cities will be encouraged to construct and lease out some low-cost houses for minimum earners, officials said. Moreover, local governments will provide certain allowances for these tenants on rental fees.
According to the new policy, small apartments with no bigger than 90 square metre construction area must now account for 70 per cent of new homes being built. This triggers one controversial issue for real estate developers and insiders.
Meng Xiaosu, chairman of China Real Estate Development Group, said, L0w-priced apartments are welcomed by the mass of people who would like to purchase new houses. But the small size is just the eye-catching part of the problem. Meng said that, nowadays, the proportion of investment into economically affordable housing only accounts for 5 per cent of the total, which is far short of the increasing demand for new houses from middle-and low-income families. He also suggested that the ideal proportion of economically affordable apartments in China’s real estate market should surpass 30 per cent.