China does need a multi-layer housing security system, says an
editorial in Oriental Morning Post. The following is an
excerpt:
A recent article by Xinhua News Agency pointed out that rising
house prices show no sign of stopping in China.
According to a report by the National Bureau of Statistics and
the National Development and Reform Commission, housing prices in
70 major Chinese cities were up a record 7.5 percent in July from
the same month last year.
When prices keep rising, the most important way to guarantee
housing for low and medium-income families is to build a
multi-layer housing security system. It is the government's major
responsibility to solve the housing problems of low and
medium-income groups.
The first layer of the housing security system should be
low-rent housing provided by the government for the urban poor. The
second layer is for low and medium income earners, they account for
about 70 percent of the total population. The government should
provide monetary subsidies, favorable interest and tax rates. The
third layer should be commercial housing with capped prices for
those who are not qualified for the second layer but also cannot
afford commercial housing.
The current problem is that many regional governments have not
attached enough importance to housing security. The policy is not
complete. There are no long-term plans.
Land reserves are limited and most low-rent and low-price
housing are in city suburbs, which makes life inconvenient and
increases the cost of social management. Furthermore, existing
low-rent and economically affordable housing are insufficient and
of poor quality. At the end of June, there were more than 60 cities
that had not provided low-rent housing. Thus the local government's
function to establish a security housing system should be clarified
and regulated.
The State Council has publicized opinions on solving the housing
difficulties of urban low-income families. A multi-layer system is
now under deliberation.
(China Daily August 23, 2007)