Shanghai about to launch public rental housing project

Han Zheng, the mayor of Shanghai, said on January 31 that Shanghai will launch the public housing rental construction plan in the second quarter of this year, and publish and commence the policy on the basis of general public opinion this year.

Shanghai will draw up the public rental housing construction plan in the second quarter of this year

On January 31 at a press conference held after the Third Session of the Shanghai's People Congress that Shanghai will draw up construction plans for the public rental housing in the second quarter of this year and input from the general public. He said, "After surveying opinions from the public, construction on the public rental housing will be amended based on their decisions and then implemented this year."

Han said that one of the focus points for Shanghai's housing safeguard measures is to extend the construction of public rental housing. He said that currently, Shanghai has had some rental housing allocated to several units and institutions, which is only a part of the rental housing policy. Now, all of society is paying close attention to how to launch the public rental housing, which has always been dominated by the government, to the whole society.

The public rental housing can reduce living costs

Regarding the housing problems faced by the current "new Shanghainese" and other young people, Han said that Shanghai will help them solve the problem first through the public rental housing policy and help them reduce their housing expenditures. He said, "I hope the public rental housing can effectively decrease the living costs of people who work, study and live in Shanghai, and in particular, reducing their housing expenditures."

While speaking of the economically affordable housing construction being carried out in Shanghai, Han said that transportation in the economically affordable housing base should be convenient and have easy access to rail transit. Shanghai has gained control of the land near rail transit points to ensure the housing construction in these areas.

Han added that Shanghai's economically affordable housing, which is being piloted in Xuhui and Minhang districts, will gradually spread in the second quarter of this year and will reach the center areas of the city in the second half of the year. Han said that through new calculations, investigations, and a carding process, Shanghai will gradually lower the threshold for entry to the economical housing and enlarge the group who is eligible to enjoy the benefits of this housing arrangement.

Han said that Shanghai opened and constructed a total of 6.05 million square meters of economically affordable housing by the end of last year and will build another 4 million square meters of economically affordable housing this year and in 2012 there will be 300,000 units available.

Shanghai's housing prices are too high and people are hoping that the real estate market has not overheated

Han thinks that Shanghai's housing safeguard system must reflect Shanghai's policies towards the real estate market: to encourage people to buy, restrain investment and crack down on speculation. Only in this way can the real estate market keep a trend of sound and steady development. Currently, the housing prices on the market in Shanghai are too high, which will harm the interests of the people of Shanghai and also goes against Shanghai's sustainable development.

Han also said that in Shanghai's 2009 fiscal revenue, the tertiary industry accounted for a large proportion, with the financial and housing industries being the two important parts. He said, "We hope Shanghai's financial structure, especially the financial sector, can be further optimized, but we do not want the housing market to be overheated. In addition, the information about the land grant fee must be made available. This year Shanghai's land revenue will mainly be used in the reconstruction of the existing areas."