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One-tenth of the flats built in Shenzhen in the next four years will be rental flats for the low-income population, according to a municipal government draft plan announced recently.

 

Shenzhen will build 140,000 rental-housing units by 2010, with a total floor space of 5.7 million square meters, about one-tenth the floor size of new housing to be built in the city by 2010, according to the ambitious draft plan.

 

The municipal land resources and housing management bureau started seeking public suggestions on the draft from Thursday. An expert panel approved the draft at a meeting held by the government last week.

 

The move is the latest government effort to rein in runaway property prices. The government hopes it can help take the heat out of the market and reduce public resentment towards its property policy.

 

Shenzhen’s population has surpassed 10 million. Most residents are migrants from other cities.

 

The sharp increase in property prices in recent years has caused much public uproar. Many people have complained that they have to spend the lion’s share of their incomes on housing.

 

Property agents in Shenzhen say the new policy will drive away potential buyers, but will not affect the high-end market too much.

 

"It will certainly bring down the rental prices a bit. But for the luxury property market, the effect will be negligible. The public housing mainly targets medium- to low-income households," a Shenzhen property agent said.

 

(Shenzhen Daily August 29, 2006)