Shenzhen Will Roll Out More Houses To Boost Home Supply

Forex News

Shenzhen, China’s southern boomtown, that has notoriously high house prices, aims for some more private homes. Shenzhen, with population of more than 12 million, wants to construct 1.7M new apartments by 2035 with 40% being a private homes. Local governments are working on policies to secure home supply and multiple channels of financial support. Last year, state lenders began giving loans to renters at ultra-low interest rates with long repayment periods in Shenzhen.

According to the housing authority, 60% of new supply would be equally divided for 3 government-subsidized housing projects. They are: homes for workers with special skills and expertise (floor area of less than 90 square meters), smaller homes (less than 70 square meters) and more modest apartments (30-60 square meters) that are strictly reserved for rentals. The home buyer or renter will be able to get a 40% discount off the property's market value or rental price under the talent scheme. Land supply reserved for the rental segment of the market will be increased, promised Shenzhen.