Chinese Government to build 10 million subsidized homes

March 10th, 2011 - 1:42 pm ICT by ANI  

Beijing, Mar.10 (ANI): The Chinese Government plans to spend nearly 1.3 trillion yuan to build 10 million units of government-subsidized housing.

According to a senior official, these efforts are to curb surging property prices and deliver the benefits of economic growth to more people.

To fund the project “at least 10 percent of net revenue from land sales by local governments must be put into the subsidized housing program”, said Qi Ji, vice-minister of housing and urban-rural development.

The governments will provide nearly 500 billion yuan, with the remainder channeled from social institutions and individuals.

In addition to loans, subsidies and tax incentives to support the program, the capital for the 10 million units is “completely viable”, said Qi.

According to China Daily, Finance Minister Xie Xuren said that land transfer revenue would be used for the first time, to build affordable housing.

Earlier, Premier Wen Jiabao had said that the government is resolved to curb property speculation and ensure an adequate supply of low-cost homes.

According to the government’s plan, 10 million units of subsidized housing will also be build next year, and 16 million from 2013 to 2015.

The program is expected to cover 20 percent of the country’s total housing supply.

However, a massive construction project has raised questions among the public as to where the finance would come from. (ANI)

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