Reduce housing stress!Construction of low-income rental housing is expected to accelerate

2022-07-23 0 By

With the acceleration of China’s urbanization, young people are gradually gathering in big cities.However, relatively limited purchasing power and high housing prices have caused housing conflicts for them to settle down in big cities.Under the guidance of the housing policy of “housing not speculation, but housing”, China implements the housing security system of both renting and purchasing.As a housing security policy for the transition period of new young citizens, indemnificatory rental houses provide policy guarantee to reduce the housing pressure of young people, stimulate the innovation vitality of young people, and promote the dividend of talent reserve in China.As recently as last year, the central government has repeatedly talked about increasing the supply of low-income rental housing and jointly owned housing.In his Report on the Work of the Government delivered in March 2021, Premier Li Keqiang stressed the following: To solve the prominent housing problem in big cities, effectively increase the supply of low-income rental housing and jointly owned housing by increasing land supply, allocating special funds and concentrating construction.In April of the same year, the Ministry of Housing and Urban-Rural Development and the National Development and Reform Commission issued a circular specifying that 40 cities will raise funds to build 936,000 units of affordable rental housing in 2021.In June of the same year, the Office of The State Council issued the Opinions on Accelerating the Development of Low-income Rental Housing.On December 6, 2021, the Political Bureau of the CPC Central Committee clearly proposed to promote the construction of affordable housing system such as affordable rental housing…This series of policies highlight the country’s high attention to the construction of affordable rental housing.During the 14th Five-Year Plan period, the Ministry of Housing and Urban-Rural Development will take four measures, including expanding the supply of low-income rental housing, to improve public services in the housing sector, pan Wei, head of the housing security department of the Ministry, said at a recent press conference held by the State Information Office.During the 14th Five-Year Plan period, 6.5 million new apartments will be built in 40 key cities, which is expected to help 13 million new citizens and young people ease their housing difficulties.The national Work Conference on Housing and Urban and Rural Development held on January 20 made it clear that 2.4 million units of low-income rental housing will be built in 2022.This figure is 2.5 times the amount actually completed in 2021.Recently, 20 provinces (autonomous regions and municipalities directly under the central government), including Beijing and Hebei and Henan, have set targets for the construction of low-income rental housing.As an important measure to stabilize investment, construction of low-income rental housing is expected to accelerate, industry sources said.Hebei pledged to continue to improve living conditions, accelerate the development of the long-term rental market and promote the construction of low-income housing in 2022.Construction began on 117,000 housing units in rundown areas, 45,000 government-subsidized rental housing units were raised, and 3,077 dilapidated rural houses were renovated.Beijing says it will adhere to “housing rather than speculation” in 2022.We will ensure the continuity and stability of real estate regulation policies, ensure land supply for housing, raise funds for the construction of 150,000 government-subsidized rental housing units, and complete the construction of 80,000 government-subsidized housing units.Construction of low-income rental housing will be intensified in some areas.Henan has pledged to speed up the development of the long-term rental housing market, raise 70,000 units of government-subsidized rental housing, and complete and deliver 200,000 units of housing for rundown people, effectively meeting the housing needs of new citizens and young people.Anhui clearly proposed to increase the number of indemnificatory rental housing 98,500 units.Effectively stimulating investment in the construction of low-income rental housing is an important aspect of stabilizing investment.Industry insiders believe that 2022 May become the year of affordable rental housing construction.According to incomplete statistics, the local government public information during the period of “difference” of the core city of affordable rental housing plan of new properties as: Shanghai, Beijing 470000 sets, 400000 sets of 400000 sets, shenzhen, guangzhou, 600000 sets of 250000 sets, 330000 sets of hangzhou and chengdu, nanjing, ningbo 213000 sets, 125000 sets of wuhan, xi ‘an 300000 sets of 250000 sets.If the construction cost of each set (construction and installation cost + land cost) is calculated at an average of 400,000 to 500,000 yuan, then the overall investment scale during the 14th Five-Year Plan period is expected to be between 2.6 trillion yuan and 3.2 trillion yuan, and the average annual investment scale is about 600 billion yuan.The 40 cities plan to build 1.9 million units of government-subsidized rental housing in 2022, with an investment of 850 billion yuan, according to the latest data.Due to the long return cycle of rental housing, some enterprises are not willing to invest too much.How to increase the enthusiasm of multi-entity investment and expand the source of funds?Industry insiders believe that rental housing REITs are necessary financial instruments for the high-quality development of the rental housing sector.It is suggested to promote the implementation of affordable rental housing REITs from the following aspects: formulating clear asset identification standards and procedures, perfecting tax policies, constructing reasonable and stable subsidy mechanism and rent adjustment mechanism, etc.