Economy

60b yuan allocated for indemnificatory housing

By Chen Ziyan (chinadaily.com.cn)
Updated: 2010-07-19 15:14

China has allocated more than 60 billion yuan ($8.85 billion) to build 5.8 million indemnificatory apartments to curb the skyrocketing housing prices, said Jiang Weixin, minister of housing and urban-rural development, at the 2010 China Mayors Forum on Saturday, according to China Securities Journal.

The central government has signed documents of responsibility for indemnificatory housing with each province, to ensure the accomplishment of the 5.8 million units of housing, according to Jiang.

He said the central government would accelerate the construction work while ensuring the construction quality, strengthening the subsequent administration and would launch a comprehensive inspection about the construction starting from August 10.

Cui Xiuhong, a property analyst at Southwest Securities, said the 600 billion yuan would be used on low-rent housing, affordable housing, price-fixed housing, public rental housing and rebuilding shanty areas.

Jiang also said 12 cities in China, including Beijing, have been selected as trial sites for the personal housing accumulation fund loan for indemnificatory housing.