China's Ministry of Construction has clarified two controversial
rules issued by the State Council in May aimed at increasing the
supply of smaller, affordable apartments, the Shanghai Securities
News said Thursday.
In a circular issued to local construction authorities, the
ministry said a small apartment that measures 90 square meters will
also include floor space within its wall plus hallways, property
manager's offices and other public areas shared among all property
owners.
The State Council's May circular contains policies that are
aimed at stabilizing soaring housing prices and increasing the
supply of small homes no bigger than 90 square meters.
The market, however, could not agree on what the 90 square
meters would include.
An earlier explanation by the ministry said the figure would not
include public areas, meaning a buyer will have to pay for a much
larger area.
The State Council circular also said small apartments must now
account for no less than 70 percent of new homes being built.
This has caused another controversy: does the policy apply to
each housing project or to the overall number of new houses in a
city?
The answer from the Ministry of Construction is that as of June
1, small homes shall account for no less than 70 percent of all the
buildings started in the next 12 months.
The report quoted industrial analysts as saying that the new
rules from the ministry are both workable and flexible.
They will also bring to an end the two months of "wait-and-see"
sentiment among housing developers, the report said.
(Xinhua News Agency July 13, 2006)