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Last updated at 16:48 GMT, Wednesday, 09 March 2011

China to invest in low-cost homes

Summary

9 March 2011

The Chinese government is planning to spend nearly $200 billion on homes for low-income families this year. They are trying to make it easier for people to buy a place to live as property prices in most Chinese cities are still increasing every month.

Reporter:
Chris Hogg

Workers at a building site in Anhui Province, China

The Chinese government aims to provide more low-income housing

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The government's promising to build or renovate 10 million households for low-income families this year and next. Officials will provide about 40% of the cost. The rest will be raised from the families or companies who benefit from the programme.

It's an ambitious target, perhaps too ambitious. The state-controlled media here says, last year, a plan to build just under six million affordable homes wasn't completed. It's getting harder and harder for families in Chinese cities to buy even a small apartment.

The government's responded with measures to try to curb speculation, making it more expensive to buy second homes, and telling local governments to set price targets. Qi Ji, a housing minister, said these price curbs were an effort to direct the limited supply of housing towards those who needed it most.

Property developers are already complaining that the plans to build so many affordable homes will hit their profits. Ten million units would be more than half the number of new homes built here last year.

But China's Premier, Wen Jiabao, has promised to work harder to address public concerns about the housing market. Reports in the state media quote officials as saying a new round of controls will be introduced if property prices don't stabilise in the weeks ahead.

Chris Hogg, BBC News, Shanghai

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Vocabulary

renovate

repair (something which is not in a good condition)

raised

collected or gathered from

just under

slightly less than

measures

official actions or rules

curb speculation

here, control or limit people who buy properties hoping to sell them for large profits

property developers

business people who organise and fund the construction of houses, apartments and other buildings

concerns

worries

quote

repeat the exact words of (somebody)

a new round of

a fresh set of

stabilise

here, become steadier or more predictable

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