Date
18 December 2017
The government is building more affordable housing projects as home prices in cities continue to soar. Photo: Bloomberg
The government is building more affordable housing projects as home prices in cities continue to soar. Photo: Bloomberg

Beijing debuts price-capped housing

Prospective homebuyers swarmed a lottery for units in an affordable housing project in Beijing on Monday, with nearly 120,000 families vying for about 1,880 apartments, Xinhua News Agency reported.

The price of the flats was set at 22,000 yuan (US$3,574) per square meter, almost 50 percent less than in neighboring blocks.

Under the scheme, the government and homebuyers will have joint ownership of the properties. If a unit is resold, the government will take 30 percent of the profit, the report said. 

The residential project was built to meet the housing needs of ordinary workers. It drew enthusiastic response from the public not only because of the affordability of the flats but also for its location, which is within the fifth ring road in the east of the Chinese capital.

Elsewhere, the government plans to offer nearly 50,000 price-capped homes this year, with 11 projects having been unveiled.

Six cities, including Shanghai, Shenzhen and Chengdu, have started promoting similar apartments in response to growing public clamor for affordable homes as housing prices in urban areas continue to soar.

China’s red-hot property sector has started to cool down this year. In May, new-home prices in half of the 70 major cities surveyed dropped from the previous month, official data showed. However, on a year-on-year basis, new-home prices in 69 of the cities continued to increase, with the highest growth at 11.3 percent, the report said.

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CG

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