Hunan has suggested in new local regulations that the government can acquire used homes and turn them into public housing, Changsha Evening Newspaper reported Tuesday.

Housing and Urban-Rural Development of Hunan province, Central China, enacted "Suggestions on promoting the stable and healthy development of the property market" on Monday.

Yang Yanbin, sales director at a Hunan property project, said the move can not only reduce government expenditure on housing, but can also provide more choices to shanty town residents.

In an effort to give a boost to developers, the regulation also states that the government can reduce half of the regulatory capital for developers credited as A-level or those developing residential projects in industrial zones.

Other suggestions include allowing cross-city home buyers to apply for housing provident fund loans, with the approval procedure simplified for real estate developers.

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