(Yicai Global) June 6 -- China's southern tech hub Shenzhen plans to build 1.7 million new homes by 2035, with no more than 40 percent being privately owned as the city looks to push affordable rentals in line with central government goals.
At least a million of the homes will be social properties for highly-skilled workers and low- and middle-income residents, according to a plan published yesterday by the Shenzhen Housing and Construction Bureau.
The scheme is the most complex and systematic housing policy the city has seen over the past 20 years and will have a major impact on the local property market, said Song Ding, director of the China Development Institute's tourism and real estate research center. Limited supplies of commercial housing will push up the price of luxury homes, while the affordable housing will provide a solution for lower-income families, he added.
Beijing began to tighten its grip over the real estate market last March as property prices ballooned to unprecedented highs nationwide, and many local governments have sought to promote affordable rentals to adhere to Chinese President Xi Jinping's mantra that a house is a home, not an investment.
The homes for talented workers will be up to 90 square meters in area, and the buyer or renter will be able to bag a 40-percent discount through the scheme. Smaller properties, at around 70 square meters, will sell to middle-income buyers and there will be a number of apartments between 30 and 60 square meters which will be dedicated to rentals.
Editor: James Boynton