China to build 5.6m affordable homes

BEIJING - China is likely to meet its target to build 6.3 million affordable housing units this year as 89 percent of the annual goal is proceeding well as schedule, the Ministry of Housing and Urban-Rural Development said Wednesday.

The construction on 5.6 million affordable homes has begun nationwide As of the end of August, accounting for roughly 89 percent of the 6.3 million units planned for the whole year, the ministry said.

A total of 720 billion yuan ($116.7 billion) has been invested in the affordable housing program, with the construction on 3.56 million homes nearly completed.

The program, which was approved in 1999, is designed to provide cheaper housing to low-income families who cannot afford to buy a home in cities, where real estate prices skyrocketed over the past years.

The government has vowed to build 36 million affordable homes during the 2011-2015 period.