Lack of funds hits China’s affordable housing

June 29th, 2011 - 3:00 pm ICT by IANS  

Beijing, June 29 (IANS) Lack of funding has hit China’s affordable housing project that would have seen the construction of 10 million homes this year, a media report said.

Peoples Daily said construction had started on 3.4 million affordable homes by the end of May.

The affordable housing project homes needs an annual investment of about 1.3 trillion yuan, and the government has invested a total of 103 billion yuan.

Sources told the state-run daily that the funding gap of affordable housing construction in Shenzhen had reached 10 billion yuan.

Many places are facing a “construction bottleneck” of affordable houses that are caused by fund shortages to varying degrees, the media report said, adding that the government has further increased financial support to local governments.

Housing and urban-rural development ministry data shows that 70 percent of domestic top-100 real estate developers have not participated in affordable housing construction.

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