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| New plans to help low income house buyers |
| CCTV.COM 2003-07-24 09:07:32 |
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For the past 10 years, real estate has been one of the key development sectors in China. This is especially true of economical housing. The State Development and Reform Commission and the Ministry of Construction have jointly issued the 2003－2004 investment construction plan for economical housing. The plan will help middle and low－income households to buy their own homes.
According to the newly－proposed plan, economical housing construction and development will take 30 percent of the total commercial housing market nationwide in the next two years. The total investment for 2003 fiscal year will reach 19 billion US dollars. In 2004, it will reach 20 billion US dollars.
Feng Changchun, director of Peking University Real Estate Research Center, said, "Such a huge investment for economical housing means the government aims to provide efficient support for middle and low－income house buyers which accounts for 60 to 70 percent of the total buyers. The new plan will definitely help them."
The Chinese government has also proposed pricing guidance for economical housing. Under price regulations the profit rate of economical houses should be no more than three percent. The price of economical housing is much lower than commercial housing. In 2001 the national average price for economical housing was 1240 yuan or around 149 US dollars per square meter, which is 60 percent of the cost for commercial housing.
China's housing reform was launched in 1998 and the old system of housing allocation was terminated. The reform aims to develop a mature and competitive housing market.
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Editor: Yang Feiyang CCTV.com
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