Shang­hai un­der­lines mass hous­ing

China Daily (Hong Kong) - - BUSINESS - By WU YIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn

Shang­hai will in­crease land sup­ply for the de­vel­op­ment of new res­i­den­tial prop­er­ties in the next five years, ac­cord­ing to the city’s 13 th five-year plan for land use (2016-20) re­leased on Fri­day.

The city will al­lo­cate a spe­cific amount of land for rental homes as well, in a bid to in­crease the ef­fi­ciency of land use and make hous­ing more af­ford­able and ac­ces­si­ble to denizens.

About 5,500 hectares, or 55 square kilo­me­ters, will be used for res­i­den­tial prop­erty de­vel­op­ment, up 20 per­cent from the pre­vi­ous plan (2011-15).

More homes among the new sup­plies will be smaller in size — com­pact apart­ments in­stead of spa­cious lux­ury con­do­mini­ums or vil­las.

About 1.7 mil­lion apart­ments will be part of the new hous­ing sup­ply, about 60 per­cent more than that in the 2011-15 pe­riod.

Mao Wenyuan, prop­erty sales man­ager with Shang­hai Wendi Prop­erty, said: “From the planned land use and planned num­bers of new sup­plies in res­i­den­tial prop­er­ties and rental resi- den­tial apart­ments, we can say that a high per­cent­age of new sup­plies will be small apart­ments which are more af­ford­able.

“The lat­est plan eyes im­prove­ment in liv­ing con­di­tions for the mass seg­ment in­stead of a few rich sec­tions of so­ci­ety. In the fu­ture, apart­ments smaller than 70 square me­ters, with one bed­room, or en-suite stu­dios are likely to dom­i­nate the new sup­plies.”

James Mac­don­ald, head of Sav­ills China Re­search, said the new plan’s im­pact on the prop­erty mar­ket will not be felt soon as it takes time for its im­ple­men­ta­tion. But the very idea be­hind the plan is to meet the mar­ket de­mand amid de­mo­graphic changes.

“More mo­bile pop­u­la­tion, sin­gles and young cou­ples will re­quire prop­er­ties with more den­sity and af­ford­abil­ity. This tends to be the nat­u­ral pro­gres­sion of city de­vel­op­ment of in­ter­na­tional cities such as Shang­hai, Hong Kong and Lon­don,” he said.

The new land sup­ply plan is based on the idea that res­i­den­tial prop­er­ties are to be used for hous­ing, and not for spec­u­la­tive in­vest­ments aimed at short-term gains.

REUTERS

Work­ers work at a con­struc­tion site in front of Shang­hai’s fi­nan­cial district of Pudong.

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