What’s new: Authorities in southern China’s metropolitan Guangzhou may introduce housing vouchers as compensation for families affected by urban renovation projects in an effort to revive the sluggish housing market.
The program under consideration will compensate residents whose run-down properties will be demolished in shantytown redevelopment projects, allowing them to purchase new housing. The vouchers will also be transferable, Caixin learned.
Currently, residents affected by urban renovation projects are normally relocated to reconstructed projects designated by the authorities.
A draft of the plan was distributed to districts under Guangzhou, a person close to the matter said. But the program is still under discussion, and its implementation remains unclear, the person said.
The context: The introduction of the housing voucher program is expected to stimulate marker demand and drive up housing transactions, industry experts said.
Property sales across China remain sluggish as a two-year housing market crisis drags on. In July, the number of new home sales in Guangzhou dropped 18% year-on-year to 5,188, according to Centaline Property. The city’s total inventory of new residential housing was 11.9 million square meters as of the end of July.
As part of efforts to boost the property market, Guangzhou planned 127 shantytown redevelopment projects this year, involving investment of 200 billion yuan ($27.5 billion), official data showed.
Several other cities including Zhengzhou, Nanjing and Qingdao are also said to be considering compensation with cash or housing vouchers for people affected by urban renovation projects.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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