BEIJING: In an effort to support the long-term supply of low-cost homes, Chinese Vice Premier He Lifeng called for putting the nation’s affordable housing under” strict closed management” and forbidding it from being listed for trading on Monday( Sep 4 ).
Since many younger buyers have been turned away by great housing prices in big cities, Beijing has been taking actions to improve the supply of affordable housing.
China will include 6.5 million fresh low-cost rental units in 40 major cities between 2021 and 2025, according to a Ministry of Housing and Urban-Rural Development official from last year.
However, the situation has gotten worse as a weaker economy hurts wages and career prospects, making it harder for regular people to afford to buy homes.
Selling of these houses after a few years, when they are permitted to get listed for sale in selling markets, have also eroded the supply of low-cost cover.
Vice Premier He stated at a meeting in Beijing that the planning and construction of affordable accommodation help ease housing problems in major cities and increase investment and consumption.
According to Xinhua, He referred to the development of affordable accommodation as a” difficult and complex” organized initiative and urged rigid management and cost control while keeping the pace of development reasonable.
He also emphasized the importance of a fair and equitable distribution system so that low-cost homes can be distributed to groups, including small income earners, with little profit.