Analysis-China tries to hit more birds with one stone in property rescue push
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Chinese cities are implementing a directive from Beijing to buy newly-completed apartments and turn them into affordable housing. The cities are broadening eligibility for subsidies and targeting various groups beyond low-income demographics, including doctors, teachers, migrant workers, and scientific researchers. The goal is to address brain drain and net population outflows to mega-cities, as well as to ease labor shortages, strengthen healthcare and education, and boost economic activity. The cities are conducting surveys to gauge interest in the housing scheme, but the success will depend on the quality and location of the apartments. Beijing is facilitating 500 billion yuan ($69 billion) in funding for the scheme, and many analysts expect it to increase funding in the future. To facilitate household consumption in the longer term, the scheme would need to be scaled up and complemented by other reforms. Boosting affordable housing to 20%-30% of the total housing stock in China would require between 3 and 4 trillion yuan in financing. The scheme is seen as a key pillar of China's strategy to re-balance its economy and drive sustainable growth through household spending.

#China #PropertyMarket #AffordableHousing #EconomicGrowth #ConsumerDemand

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