Shenzhen to adopt Singapore housing policy and drop Hong Kong model
- Shenzhen plans to offer 1 million homes at as low as half of the prevailing market rate, according to a policy paper released last month
- High cost of living seen as a factor driving away skilled workers
Shenzhen, one of the most expensive cities in China, is poised to borrow a page from the playbook of Singapore for providing more subsidised homes, ditching the Hong Kong model the Chinese city has followed for more than two decades since private home ownership reforms were rolled out.
Shenzhen, known as China’s Silicon Valley, will offer 1 million government-subsidised homes at as low as half of the prevailing market rate, according to a consulting paper issued by the Housing and Construction Bureau of Shenzhen on April 29.
“Shenzhen would like to be a pioneer seeking a scheme more like Singapore, separating more affordable homes to average individuals seeking a place to live,” said Li Yujia, senior economist with the Real Estate Assessment and Development Research Centre, Shenzhen – a research arm of the Shenzhen government.
“Currently we are still using a Hong Kong model, where most homes are built and sold as commercial products in the private market and only a small portion of cheap rental flats are designed for the poorest.”
The subsidised homes will be equally split into three parts, including public rental flats leasing for 30 per cent of market rent, affordable homes at half of the market rate and other homes at 60 per cent of the market rate.
