Beijing focuses on low-cost housing in new land supply for rental homes

Home prices have remained high in large cities, despite a big downturn for the country's highly indebted real estate sector. Of 3 million square metres of new rental land offered for development this year, 2.33 million square metres will be for low-cost rental housing, the Beijing government said, the equivalent of more than 320 soccer fields.

Beijing said on Monday low-cost housing will account for nearly 80% of the Chinese capital city's new land supply for construction of rental homes this year, while total new land supply is unchanged from 2021. China has stepped up efforts to address housing issues, faced particularly by young people, under President Xi Jinping's so-called common prosperity plan. Home prices have remained high in large cities, despite a big downturn for the country's highly indebted real estate sector.

Of 3 million square metres of new rental land offered for development this year, 2.33 million square metres will be for low-cost rental housing, the Beijing government said, the equivalent of more than 320 soccer fields. In total, Beijing will supply 10.6 million square metres of land for homes this year, unchanged from 2021, including 7.6 million square metres of homes for commercial sales, according to a notice published by Beijing's Natural Resources planner.

China's new home prices rose for the first time since September on a monthly basis, official data for January showed last week, partly supported by improved demand in big cities. China aims to supply 6.5 million new low-cost rental homes in 40 major cities in 2021-2025.