China will supply 6.5 million more low-cost rental homes in 2021-25 -Breaking
BEIJING (Reuters). – China will supply 6.5 Million new, low-cost housing units in 40 major cities between 2021-2025. The official stated Tuesday that this is to help meet the growing demand for rental housing in these major cities.
This will help 13 million young people live better, Pan Wei (an official of the Ministry of Housing and Urban-Rural Development) stated at a Beijing news briefing. According to an official transcription.
China’s President Xi Jinping has increased efforts to tackle housing problems faced by youths, especially in light of the rising home prices, as part of his “common prosperity plan”.
Pan stated that the development of affordable housing for rent is focused on areas with high property prices and large populations.
According to Reuters calculations, Tier-one cities such as Beijing and Shanghai will provide 1.87 million units in low-cost rentals housing between 2021-2025. These figures are based upon plans released by the cities.
Pan said that in 2021, there were 936,000 units offered by 40 cities. This will provide housing for 2 million people.
China’s property decline is set to continue into 2022. Monthly new home prices are expected to fall and major developers will be facing liquidity problems.
Chinese regulators will allow for a slight relaxation of curbs in the property sector, to avoid a hard landing. They also want to keep up with the demands from buyers who are not speculative.
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