In order to provide more accommodation for middle- and
low-income families, relevant government departments plan to reset
price functions for low-rent apartments, more high-end apartments
as well as price-capped commercial housing, the Beijing Morning
Post reported on Thursday, quoting an anonymous source.
The current housing system, a combination of commercial,
affordable and rent-only apartments, was adopted in 1998 and was
principally designed to break down state house welfare and
encourage house-buying.
However, many people are still not well accounted for under the
current system, which has met with its fair share of complaints. At
present, only 1 percent of families concerned qualify to live in
low-rent apartments. Moreover, state-sponsored affordable housing,
because of its comparatively low cost, is usually out of supply,
leaving the majority of buyers as not being from the "middle- and
low-income families" target. Meanwhile, prices of commercial
apartments nationwide keep rising.
"Reform in the near future has become such a priority for the
Ministry of Construction that 14 individual research departments
have been set up," said an insider having attended the research and
discussions on the issue.
According to mainstream concepts, low-rent apartment should be
constructed for "minimum guarantee" households; rent-oriented
affordable housing should be provided for those who are not
qualified to benefit from low-rent apartment and who cannot pay for
even low-price apartments; thus sale-oriented affordable housing
will target low-income families. Price-capped commercial houses, a
new kind of housing in the market, will be specifically sold to
households looking to resettle.
The affordable housing system is one of the reform's
centerpoints. Two proposals have already entered the final
selection stage, namely rent-oriented alternatives and public
housing as implemented in Hong Kong. Early reports seem to indicate
that pressure groups favor rent-oriented proposals while affordable
housing, now totally for sale, will turn to the rent market.
Since the reform concerns popular interests, a final decision is
yet to be made, but government departments have reached consensus
on expanding coverage for rent-oriented apartments.
"The reform measure can be brought forward at the end of this
year, or early next year," added the source.
(China.org.cn by Tang Fuchun, August 25, 2006)