Beijing will build more low-cost houses and strengthen its
market supervision this year in a bid to provide more affordable
housing and cool down the overheated property sector.
According to a government work report delivered by Beijing Mayor
Wang Qishan on Friday, the city will begin building more than 3
million square meters of mid and low-priced commercial houses,
two-thirds of which will be affordable housing. Another 300,000
square meters of cheap houses for rent will be built or purchased
to accommodate the poor.
"Beijing will also introduce rental policies to upgrade current
affordable house management regulations," Wang said. "Encouraging
people to rent instead of buying is expected to alleviate housing
difficulties for low-income families."
The mayor also said Beijing would try to strike a balance
between overall land supply output and land development scale,
ensuring a steady increase in real estate investment.
Last year real estate investment totaled 171.9 billion yuan
($21.7 billion), 2.9 percent lower year-on-year in terms of its
proportion of overall social investment in fixed assets, but still
accounting for more than half.
"Beijing will increase land for the construction of mid-sized
and small as well as lower-priced residential houses, and actively
promote the development of the second-hand housing market, to
depress the excessive growth of house prices," Wang added.
(China Daily January 27, 2007)