In a bid to provide assistance to low-income earners after rapid house price rises across the country, the Ministry of Housing and Urban Development in China has developed millions of affordable homes for residents.
A recent statement from the Ministry highlighted a total of 1.12 trillion yuan of investment in affordable housing over the first 11 months of 2013.
At the beginning of the year, the Chinese government announced it would begin construction on 6.6 million affordable housing units. So far, 5.44 million of these units have been completed to provide millions of residents with affordable housing options.
This affordable housing comes at a time when house prices around the country have skyrocketed, leaving many lower-income earners unable to purchase real estate in China.
However, the introduction of these homes and others planned for the future could see this trend changing.
Prices grow rapidly
Throughout 2013, the Chinese property market has seen substantial price rises. A November 18 release from the National Bureau of Statistics of China revealed rapid price growth for residential properties throughout the country.
According to the release, sale prices of brand new commercial residential buildings rose in 65 out of 70 cities over the month of October. Some cities experienced rises of up 21.4 per cent year on year.
Established commercial residential buildings also saw growth over this period after 62 out of 70 cities reported price rises. The highest price increase recorded was 19 per cent year-on-year.
Combating affordability
In 2011 the Chinese government released its 12th five-year plan for affordable housing. The plan stated the government aims to increase the availability of affordable housing units to 36 million over the next five years. This bold target is expected to be reached through various initiatives put in place by the government, such as government subsidy and increased redevelopment efforts.
Other strategies include encouraging the healthy development of urbanisation, improving basic public services and promoting coordinated regional development.
The plan states some of the 36 million affordable units will comprise renovated housing in run-down areas, which may provide some more options for those in both rural and urban communities.
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