(Yicai Global) June 5 -- The renovation of cheap rental apartments in Shenzhen's ‘urban villages,’ which refer to dense clusters of high rises targeting the city’s large migrant worker population, is to upgrade the accommodation to make it safer and of better quality, and rents, in theory, should not go up, the municipal government said today.

The renovations will be carried out in a stable and appropriate manner and will provide affordable and decent rental housing for more people, the Shenzhen government said in response to concerns that tenants are ‘being forced out’ and ‘rents will go up.’

The upgrades will improve the condition of housing in the urban villages and solve problems such as insufficient supporting public facilities, safety issues in terms of fire, power supply and transportation, random rent hikes by apartment owners and increases in the price of water, power and gas, an official from the local bureau of housing and construction said.

Other issues, such as tenants’ difficulties in relocating to the city and getting their children into local schools, will be thoroughly addressed as well, the bureau said.

Rumors have been flying online after residents in Baimang Village were told to move out temporarily while renovations are carried out.

The Xili subdistrict office, which manages the village in Nanshan district, stepped in to calm the panic. The office will make arrangements depending on whether tenants have found somewhere to go or not, it said yesterday. For those who are unable to move, they will not be forced out, and the rents will stay the same, it added.

The subdistrict office will subsidize those willing to relocate and assist them in finding alternative accommodation, it said. Whether they move out or not, their children will still be eligible to study in schools in Nanshan district.

Shenzhen started a campaign to improve its urban villages, which are the biggest source of housing in the city, earlier this year. The hi-tech hub is building one million rental apartments, enough to house up to four million people, between 2021 and 2027. By 2035, the city expects to offer cheap rental accommodation to five million people, accounting for a quarter of its long-term population, the official said.

Editor: Kim Taylor