The city of Beijing plans to construct more affordable homes that can be rented to low-income earners in order to ease property demand and inflation, according to officials.
Under new rules announced by the local government, the city will build approximately 60,000 state-subsidised homes that can be leased by mid- and low-income earners, including migrant workers and fresh graduates.
To attract private investment, Beijing will also allow investors to sell the homes several years from now at prices directed by the government. Otherwise, investors earning only rental income will have to wait around 30 years to break even.
The central government has been pushing for the construction of more affordable homes to ease record home prices and is now showing a preference for such homes to be rented rather than sold to prevent exploitation and reduce graft.
Furthermore, the city plans to build and acquire more than 300,000 public rental apartments in the five years to 2015, accounting for 60 percent of all affordable public housing.
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