At the Central Economic Work Conference held in December 2023, it was emphasized to accelerate the construction of affordable housing, the development of “dual-use” public infrastructure, and the transformation of urban villages, which are referred to as the “three major projects.” The aim is to improve relevant foundational systems and accelerate the establishment of a new model for real estate development. In recent years, accelerating the construction of affordable housing has become an important aspect of improving the housing system. Both central and local governments have continuously introduced relevant supportive policies to promote this initiative, achieving positive results. By tracking the relevant policies on affordable housing from both central and local governments, we can understand important industry dynamics and systematically grasp the development trends in the industry, providing professional references for stakeholders involved in the sector. The affordable housing referred to in this report includes two types: rental-based and sale-based affordable housing, where rental-based includes public rental housing and affordable rental housing, while sale-based affordable housing is sold based on a principle of cost recovery with minimal profit.
Summary for this month: The Ministry of Housing and Urban-Rural Development has requested all regions to quickly issue implementation opinions and supporting measures for the construction of affordable housing, actively promoting the commencement and preparation of affordable housing projects. The construction of affordable housing has become a key focus of current housing development planning and a new model for real estate development. At the local level, the focus is primarily on the supply of affordable housing and housing management, specifically including the following: In terms of housing supply, multiple cities such as Chengdu, Hangzhou, and Tianjin have successively clarified their plans for the construction of affordable housing. Beijing has released information on proposed land projects for affordable rental housing, significantly advancing the work on affordable housing construction. In terms of housing management, Beijing has issued regulations to standardize the management of rental housing prices, requiring that the annual increase in rental prices for affordable rental housing does not exceed 5%, and plans to include housing rental prices under regulatory oversight, all of which contribute to the standardization and healthy development of the housing rental market.
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Central Policies
The Ministry of Housing and Urban-Rural Development requires all regions to quickly issue local implementation opinions and supporting measures for affordable housing construction
On February 5, the Ministry of Housing and Urban-Rural Development held a site meeting on affordable housing construction in Fuzhou, Fujian Province. The meeting emphasized that in the construction of affordable housing, all regions should reasonably determine the scope of protection and admission criteria, publicly announce them, establish a regular acceptance mechanism, and include eligible wage-earning groups in the waiting list for protection within a reasonable waiting period. The aim is to use the formulation of housing development plans as a starting point to improve the “protection + market” housing supply system, establish a new mechanism linking people, housing, land, and finance, and make the construction of affordable housing an important part of housing development planning. Based on the demand for affordable housing, scientifically determine the development goals for affordable housing, linking people to housing, housing to land, and housing to finance. Explore the establishment of three systems for the inspection, pension, and insurance of affordable housing to provide safety guarantees throughout the life cycle of the housing. Select some affordable housing projects as demonstration projects, aiming for green, low-carbon, intelligent, and safe standards, creating models of “good houses” to make the living conditions of the people more comfortable and beautiful.
The meeting required all regions to focus on institutional development, quickly issue local implementation opinions and supporting measures, and accelerate the improvement of the “1+N+X” policy system. Focus on project commencement, reverse schedule the first batch of already determined projects, and ensure timely commencement and delivery. Focus on the preparation of the second batch of projects, accelerating the formation of a rolling promotion mechanism of “implementing a batch, reserving a batch, and planning a batch” for continuous project planning and reserve. Focus on the implementation of supporting policies, ensuring the effective use of central subsidy funds, special bonds, commercial loans, and tax incentives.
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Local Policies
(1)Housing Supply:Chengdu, Hangzhou, and other cities clarify their plans for affordable housing construction in 2024
1. Chengdu plans to construct 30,000 units of affordable rental housing in 2024
On February 1, the second session of the 18th People’s Congress of Chengdu opened. The government work report stated that in 2024, Chengdu will unswervingly guarantee and improve people’s livelihoods in development, accelerating the construction of a happy home for the people. In terms of enhancing employment and social security services, the report proposed to improve the housing security system, expand the pilot scope of monthly direct payment of housing provident fund for rent, construct 30,000 units of affordable rental housing, allocate 15,000 units, and supply 10,000 units of talent apartments, with the online processing rate of housing provident fund reaching over 95%.
2. Beijing’s key task list for 2024 specifies the construction of 70,000 units of affordable rental housing
On February 1, the Beijing Municipal Government issued the “Key Task List of the Municipal Government Work Report for 2024,” clarifying the economic and social development goals and key tasks for 2024. It proposed to construct a new model for real estate development, improve the housing system that supports both rental and purchase, focus on solving housing issues for new citizens and young people, and promote the construction of sale-based affordable housing, with the construction of 70,000 units of affordable rental housing and the completion of 80,000 units of various types of affordable housing. Strengthen market monitoring and analysis, continuously improve the real estate market regulation mechanism, maintain reasonable and moderate real estate financing, and strengthen the regulation of the housing rental market, continuing to carry out pilot work for “no group rental communities.”
3. Nanchang plans to construct 17,000 units of affordable rental housing in 2024
On February 7, the Nanchang Municipal Finance Bureau announced that in 2024, Nanchang plans to construct 17,000 units of affordable rental housing to improve the living conditions of the people. In 2023, Nanchang allocated 565 million yuan in subsidy funds, with actual investment in affordable rental housing projects reaching 621 million yuan, exceeding the annual plan of 16,650 units, with 16,805 units actually constructed, all of which have commenced or been delivered for use.
4. Hangzhou plans to start construction of no less than 1 million square meters of affordable housing in 2024
On February 19, the Hangzhou Municipal Government issued several policies to further promote high-quality economic development, proposing to better support rigid and improved housing demand, and promote the stable and healthy development of the real estate market. Steadily and orderly advance the planning and construction of sale-based affordable housing, strengthening management of sales. In 2024, the new construction of affordable housing will not be less than 1 million square meters. Continue to promote the renovation of old urban communities, with 260 old urban communities and 2,542 buildings scheduled for renovation in 2024. Actively and steadily promote the installation of elevators in old residential buildings where conditions permit.
5. Tianjin plans to construct 5,000 units of affordable rental housing in 2024
On February 20, Tianjin announced 20 people’s livelihood projects for 2024. Among them, Tianjin proposed to standardize the development of affordable rental housing. Construct 5,000 units of affordable rental housing to gradually alleviate housing difficulties for new citizens and young people; provide 400 million yuan in rental subsidies to low- and middle-income families in housing difficulties, benefiting an estimated 70,000 struggling families; continue to carry out renovations of dilapidated houses for rural residents, ensuring that all eligible households are renovated, with an estimated completion of 200 households.
6. Shenzhen’s Housing and Urban-Rural Development Bureau requires greater efforts to accelerate the construction of affordable housing
On February 22, the Shenzhen High-Quality Development Work Promotion Meeting stated that greater efforts are needed to accelerate the construction of affordable housing. Following the work requirements of “the more, the better; the faster, the better” and the development strategy of “following the industrial park, following large institutions, following rail transit, and following revitalized resources,” the goal is to construct 100,000 units of affordable housing and supply 65,000 units in 2024. According to the standards of good houses and good communities, high-quality construction of various types of housing will be ensured to make the people’s living conditions more comfortable.
7. Beijing releases information on proposed land projects for affordable rental housing in 2024
On February 28, the Beijing Municipal Planning and Natural Resources Commission released information on proposed land projects for affordable rental housing in 2024, achieving project mapping and location, and actively accepting public supervision. The supply of land for affordable rental housing in Beijing this year focuses on the rental housing collection goals during the 14th Five-Year Plan period and the implementation progress of Beijing’s overall urban planning, as well as the requirements for the deconcentration and tiered acceptance of non-capital functions in the “one core, one main, one deputy, two axes, multiple points, and one area” structure, with greater emphasis on optimizing and guiding the spatial supply-demand structure. At the same time, in conjunction with urban renewal actions and the requirements for upgrading the central urban area, actively guide the supply of rental housing land through incremental supply and deep exploration of existing stock. According to the situation of proposed land projects for affordable rental housing in 2024, 19 affordable housing projects are planned for supply this year, distributed in Chaoyang, Haidian, Fengtai, Shijingshan, Shunyi, Changping, and Yizhuang New City.
(2)Housing Management:Beijing issues regulations to standardize rental housing price management and plans to include housing rental prices under regulation
1. Guangzhou’s affordable rental housing projects can be exempt from supporting fees
On February 6, the Guangzhou Housing and Urban-Rural Development Bureau issued a notice on further strengthening the management of urban infrastructure supporting fee collection (revised). The notice supports the construction of public welfare projects that concern the well-being of the people. In line with the policy guidance from higher authorities, affordable housing projects, school safety projects, and other public welfare projects are included in the exemption range, supporting the construction of projects that meet the people’s expectations. Newly built affordable rental housing recognized by the housing security department, as well as newly built supporting public service facilities for community elderly care, childcare, and other residential areas that meet Guangzhou’s planning, can apply for exemption according to procedures.
2. Fuzhou clarifies the planning and design work for affordable housing
On February 7, the Fuzhou Natural Resources and Planning Bureau and the Housing Management Bureau jointly issued the “Guidelines for the Planning and Design Work of Affordable Housing,” specifying requirements for daylight standards, public service supporting facilities, prefabricated buildings, green space ratios, and parking space construction standards, standardizing the construction of affordable housing. The document proposes that the daylight standards refer to the standards for newly built residential projects in old districts, requiring that each residential building has at least one room (defined as a bedroom or living room) that meets the daylighting requirements of at least 1 hour of internal daylight and 3 hours of external daylight on the coldest day of the year, or does not worsen the situation.
3. Beijing issues regulations requiring that the annual increase in rental prices for affordable rental housing does not exceed 5%
On February 23, the Beijing Municipal Housing and Urban-Rural Development Committee issued a notice to standardize the assessment, determination, and filing management of rental prices for affordable rental housing. The notice, which is open for public consultation, clarifies that affordable rental housing in Beijing operates on a market basis, and when the holding and operating units dynamically adjust the filed rental prices, the project rental prices should still be lower than the assessed rental prices of similar quality housing in the same area. If the filed rental price increases, the annual increase should be lower than the surrounding rental price increase and not exceed 5%. After the rental price adjustment, it should be re-filed as required.
4. Beijing introduces policies to include housing rental prices under regulation
On February 27, the Beijing Municipal Housing and Urban-Rural Development Committee announced that it, along with the Beijing Housing Fund Management Center, has researched and drafted the “Interim Measures for the Custody of Housing Rental Deposits and Rental Price Regulation in Beijing (Draft for Consultation),” which for the first time clarifies the inclusion of housing rental prices under regulation. The draft specifies that deposits collected by housing rental enterprises will be held in third-party custody accounts opened by the Beijing Housing Fund Management Center; if a housing rental enterprise collects rent exceeding three months’ rent in a single transaction, the portion exceeding three months’ rent will be regulated, and the rent will be transferred monthly to the housing rental enterprise’s account. The Beijing Housing Fund Management Center is responsible for managing the custody of deposits and the regulation of rental price accounts in the city.
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Conclusion
From the affordable housing policies issued by the central and local governments this month, it can be seen that at the central level, the Ministry of Housing and Urban-Rural Development has requested all regions to quickly issue implementation opinions and supporting measures for affordable housing construction, actively promoting the commencement and preparation of affordable housing projects. The construction of affordable housing has become a key focus of current housing development planning and a new model for real estate development. As the construction of affordable housing progresses in various regions, it will further improve the “protection + market” housing supply system.
At the local level, this month’s affordable housing policy content mainly focuses on the supply of affordable housing and housing management. Specifically, in terms of housing supply, since the frequent mentions of affordable housing construction in the “Two Sessions” of various regions in January, cities such as Shanghai, Beijing, and Guangzhou have clarified their plans for affordable housing construction. This month, cities such as Chengdu, Hangzhou, and Tianjin have also successively clarified their plans for affordable housing construction, while Beijing has released information on proposed land projects for affordable rental housing, significantly advancing the work on affordable housing construction. Meanwhile, in terms of housing management, Beijing has issued regulations to standardize rental price management for affordable rental housing, requiring that the annual increase in rental prices does not exceed 5%, and plans to include housing rental prices under regulatory oversight, all of which contribute to the standardization and healthy development of the housing rental market.
Note: The “Guiding Opinions on Planning and Construction of Affordable Housing” issued by the State Council in September 2023 proposed to increase policy support for affordable housing, with pilot programs in cities with populations exceeding 3 million. This report monitors a total of 35 such cities, including Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Chengdu, Tianjin, Wuhan, Xi’an, Hangzhou, Nanjing, Shenyang, Qingdao, Jinan, Changsha, Harbin, Zhengzhou, Kunming, Dalian, Nanning, Shijiazhuang, Xiamen, Taiyuan, Suzhou, Guiyang, Hefei, Urumqi, Ningbo, Fuzhou, Changchun, Nanchang, Dongguan, Foshan, Wuxi, and Changzhou.
Contact Information
Author: Senior Researcher at E-House Research Institute, Zhu Guang
Email:[email protected]
