Chinesepod - A multi-layer housing system needed

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BIZCHINA / Opinion

A multi-layer housing system needed

(China Daily)
Updated: 2007-08-23 16:21

China does need a multi-layer housing security system, says an editorial
in Oriental Morning Post. The following is an excerpt:

A recent article by Xinhua News Agency pointed out that rising house
prices show no sign of stopping in China.

According to a report by the National Bureau of Statistics and the
National Development and Reform Commission, housing prices in 70 major
Chinese cities were up a record 7.5 percent in July from the same month
last year.

When prices keep rising, the most important way to guarantee housing for
low and medium-income families is to build a multi-layer housing security
system. It is the government's major responsibility to solve the housing
problems of low and medium-income groups.

The first layer of the housing security system should be low-rent housing
provided by the government for the urban poor. The second layer is for
low and medium income earners, they account for about 70 percent of the
total population. The government should provide monetary subsidies,
favorable interest and tax rates. The third layer should be commercial
housing with capped prices for those who are not qualified for the second
layer but also cannot afford commercial housing.

The current problem is that many regional governments have not attached
enough importance to housing security. The policy is not complete. There
are no long-term plans.

Land reserves are limited and most low-rent and low-price housing are in
city suburbs, which makes life inconvenient and increases the cost of
social management. Furthermore, existing low-rent and economically
affordable housing are insufficient and of poor quality. At the end of
June, there were more than 60 cities that had not provided low-rent
housing. Thus the local government's function to establish a security
housing system should be clarified and regulated.

The State Council has publicized opinions on solving the housing
difficulties of urban low-income families. A multi-layer system is now
under deliberation.

(For more biz stories, please visit Industry Updates)

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