Society

Land in sight, but home is still too far away

By Wang Qian (China Daily)
Updated: 2010-02-03 07:41

Govt yet to meet target for construction of affordable housing

The area earmarked for affordable housing last year was increased by about a third of what it was in 2008. But lack of timely financial support still prevents millions of Chinese from realizing their dream of owning an apartment.

Figures from the Ministry of Land and Resources released yesterday show that about 10,400 hectares of land was earmarked for affordable housing last year, a 31-percent year-on-year increase.

"The government has supplied the land, but what matters now is how much local authorities can invest in the construction," Yan Jinming, a professor at the land management department of Renmin University told China Daily.

For local authorities, building affordable housing is like charity work, where they lose money but gain reputation, Yan said, adding, "The local government acts like a businessman instead of a governor."

A report released by the National People's Congress Financial and Economic Affairs Committee last October showed that as of late August 2009, nearly 40 billion yuan ($5.9 billion) was invested in affordable housing projects across the country, with less than a quarter of the target met.

By the end of last year, less than 30 percent of the affordable housing project target in Guangzhou, Shenzhen and Chongqing was completed, China Securities Journal reported in December.

In late 2008, the government promised to invest 900 billion yuan in affordable housing construction to help 7.47 million low-income families move into new houses. And the latest plan released by the State Council in December nearly doubled the original target, covering 15.4 million families before 2012.

"If the local government does not play a role, owning a house will remain a dream for most Chinese," Yan said.

As housing prices soar, it is no wonder that local authorities and real estate developers are turning their backs on affordable housing projects.

Latest figures from the Beijing Statistics Bureau show that in January this year, the average price for commercial housing within the fourth ring stood at about 26,000 yuan per sq m and the price outside the sixth ring was nearly 10,000 yuan.

On Jan 21, China Overseas Property won the highest bid in Beijing by nearly 6 billion yuan for a parcel of land in Fengtai district.

In order to fight high housing prices, many local governments are planning to build affordable houses. In Beijing alone, 62,000 affordable houses will be built this year.

Hainan province plans to build 107,000 low-income houses within three years.

Liao Yonglin, director of the ministry's land utilization department, said the land used for the reconstruction of shantytowns will be given priority and every six months, the ministry will release the latest information on affordable housing plans.