Thursday, May 12 2022

FILE PHOTO: Residential and commercial buildings are located in downtown Guangzhou, China October 7, 2017. REUTERS / Bobby Yip

BEIJING (Reuters) – China will provide 6.5 million new low-cost rental housing units in 40 major cities in 2021-2025, an official said on Tuesday, in a bid to meet growing demand in major cities in as their population increases.

It will ease the hardships of 13 million young people, Pan Wei, an official with the Ministry of Housing and Urban and Rural Development, said at a press briefing in Beijing, according to an official transcript.

China has stepped up efforts to address the housing problems facing young people in particular, amid soaring housing prices in major cities, as part of President Xi Jinping’s “common prosperity” plan.

The development push for affordable rental housing is focused on cities with a large influx of people and high housing prices, Pan said.

Tier-one cities like Beijing and Shanghai will provide a total of 1.87 million units of low-cost rental housing in 2021-2025, according to Reuters calculations based on plans released by the cities.

In 2021, 936,000 homes were offered in 40 cities, housing 2 million young people, said Pan.

The slowdown in real estate in China is expected to continue in 2022, with a monthly drop in new home prices and a liquidity crisis that has engulfed some large real estate developers.

Chinese regulators are loosening restrictions on the real estate sector slightly to avoid a hard landing and meet demand from non-speculative home buyers.

Reporting by Liangping Gao and Grabriel Crossley; Edited by Christian Schmollinger

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