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Beijing: Beijing orders Chinese cities to Buying a newly completed apartment The first step in converting them into affordable housing is to announce plans to expand eligibility for subsidies and repair Other economic issues In progress.
Chinese leaders issued the directive in May to ease The ongoing housing crisisThat has led to a surge in unsold apartment inventories, denting developers’ cash flow and weighing heavily on house prices, consumer confidence and economic activity.
The sluggish real estate market and weak consumer demand Economic growth is lower than expected In the second quarter.
Some analysts see Beijing’s new policy on affordable housing as a rare consumer-oriented move in China that is expected to shift resources from local governments to households, a measure many have long called for to stimulate domestic demand.
But an analysis of public statements from 20 Chinese cities suggests local officials are thinking much more than that.
In addition to the usual low-income targets, most agencies sent questionnaires to doctors, teachers and other groups to gauge demand for subsidized rents and apartments. Some also called on migrant workers from rural areas and even scientific researchers to express interest.
Economists said the announcements showed cities were using new housing policies to try to address brain drain and net population outflow to megacities such as Shanghai and Shenzhen.
Easing factory labor shortages and strengthening health care and education could help relieve some of the economic and social pressures on smaller population centers by boosting economic activity and broadening the tax base.
“Small cities have more motivation to develop affordable housing,” said Nie Wen, an economist at Huabao Trust.
“By providing affordable rents, they can attract more migrant workers and reduce net population outflow. Affordable housing can also be sold to police officers, doctors and teachers, helping to retain talent.”
Chinese cities have just begun to release statements on the implementation of various tasks during the May Day holiday, which for the first time disclose detailed information about the target population.
Ten of 20 statements reviewed by Reuters announced investigations into medical staff, teachers and other public sector employees. The eastern cities of Yantai and Longkou also said migrant workers were eligible to buy and rent affordable housing.
Hangzhou and Jinhua in Zhejiang province are hoping to attract scientists, while Tangshan in Hebei province, adjacent to Beijing, is offering housing to new citizens and young people under 35.
Kunming said in a statement that its goal was to attract “talent groups needed by the city,” but did not specify which groups.
Duan County, in the debt-ridden and poorer Guangxi region, offers discounted apartments to “households without housing or with per capita housing area of less than 15 square meters.”
Analysts expect the surveys to draw a strong response. However, if the apartments purchased by the government for the program are in poor condition or in an inconvenient location, many potential renters or buyers may change their minds.
“We don’t know yet what the quality of these apartments will be,” said Ma Hong, a senior analyst at the Guangdong Housing and Urban-Rural Development Research Institute.
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