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China to build more affordable homes

Jan. 22, 2014 - The Ministry of Housing and Urban-Rural Development (MOHURD) recently announced it will start more than 6 million units of government-subsidized affordable housing and complete the construction of 4.8 million units in 2014. In 2013, the country has built 4.7 million affordable houses and started construction on 6.3 million units, according to the Ministry's statistics. This level of construction was slightly higher than the original target, which was made in late 2012.

Mr. Jiang, director of MOHURD, said the country will increase the supplies of land and affordable housing next year and ensure the better implementation of current policies to contain soaring housing prices in some major cities. Jiang's statement came after the latest official data showed the price of homes in large Chinese cities continued to rise in November, despite fresh cooling measures in more than a dozen cities in recent months.

The average price of a new home in 100 monitored cities was 10,833 RMB (1,770 USD) per m2 in December 2013, up 11.5% from December 2012. Prices rose 0.7% from November 2013, representing the 19th consecutive increase since June 2012. The continued increase of housing price in 2013 was mostly due to high demand and lower supply of new residential housing projects in city centers.

January 22, 2014  By Wood Markets