From Chinese Press

Affordable housing for the needy

(China Daily)
Updated: 2011-05-24 07:58

Affordable houses are meant for the low-income groups. But media reports show that some local governments and State-owned enterprises (SOEs) are buying them en bloc to accommodate their staff members, says an article in the Beijing News. Excerpts:

The action of some local governments and SOEs has shocked the public because they are grabbing houses meant for the low-income groups. Affordable housing is an important component of the social security system, not part of a welfare project for employees of profit-making organizations.

Besides, affordable housing is the central government's way of intervening in the housing market to help a specific group of people. Therefore, such housing units should be allocated to people whose income is below a certain level.

China's real estate market has developed rapidly in the past few decades, but legislation has not kept pace with that development.

Legislation is yet to take care of each and every aspect of the property market. As a result, many real estate developers, local governments and other organizations are taking advantage of the loopholes in the laws to suit their purpose.

Issues like vague division of income levels and supposed lack of construction funds can prompt some officials and organizations to take advantage of the rules to make profit. Hence, it is of utmost importance to enact a complete set of laws.

(China Daily 05/24/2011 page9)