Source: CCTV.com
03-11-2009 18:15
Special Report: 2009 NPC & CPPCC SessionsThe welfare of ordinary people has come under intense discussion at this year's CPPCC session. Housing is a key concern, and the government has released more details of what it intends to do in this area.
 |
| 900 billion yuan will be taken from the 4 trillion yuan fiscal package, to be spent on building affordable houses. |
900 billion yuan will be taken from the 4 trillion yuan fiscal package, to be spent on building affordable houses. Beijing has also decided to invest 8-and-a-half million yuan in the housing sector.
42,000 flats of affordable houses will be on sale this year in Beijing. This will include more than 22,000 affordable houses and over 19 thousand units of price-capped houses. Meanwhile another 13 million sets of affordable houses that started construction in previous years will be on sale in 2010 or 2011.
According to the municipal Bureau of Statistics, the sales of unfinished properties decreased by nearly 40 percent in 2008 compared with the year before. At such a pace it will take two years to sell out all the new houses of 20 million square meters.
Industry insiders think the government will probably lower the standard for affordable house buyers. This will allow more citizens to qualify for these houses. In turn, this will affect the sales of commercial houses.
Zhu Zhongyi, vice chairman of China Real Estate Assoc., said, Price-capped housing is closely connected with the real estate market. The oversupply of price-capped houses will surely take up some market share.
However real estate developers say they are not worried at all because price-capped houses are totally different than commercial houses. Buyers of price-capped house are mostly low-income earners who are not their customers.
Editor:Zhang Ning
