The country's construction authorities will strive to guarantee
23 square meters of living space for average urban residents
by the end of 2005.
This is the "main
task" of housing departments during the 10th Five-Year
Plan (2001-05) period, according to the Ministry of Construction.
Ministry statistics
indicate the average living space was 10 square meters at
the end of 2000.
A ministry official
said that over the next 10 years, there exists great potential
for development in the housing sector.
"There will
be a fast period of housing development before 2005 as we
strive for 23 square meters for each urban resident,"
said Xie Jiajin, director of the Department of Housing and
Real Estate under the ministry.
According to economic
models, residents will invest more in their properties if
their average annual income reaches US$800 to US$1,500, Xie
said.
"There exists
a big gap between China and developed countries in terms of
living space, which itself means a tremendous potential for
development," Xie said.
He said housing
prices are relatively high in China, and called on departments
concerned to help cut prices while also trying to increase
the income of residents.
According to World
Bank standards, rational housing prices should be three to
six times a family's annual income.
Xie said China
would speed up housing reforms and apply advanced technology
in housing construction.
In the next five
years, China should try to increase the trade of new and old
houses.
Xie added that
the expansion of house rental markets is another priority
of housing authorities.
The government
will build more low-cost houses to rent for low- and middle-income
families.
Currently, the
government gives housing subsidies to staff in the State sector,
which helps spur the property market.
The State will
also strengthen the reform of building firms with China's
entry into the World Trade Organization, another official
said.
"Whether in
terms of capital or technology, the scale of Chinese real
estate firms cannot compete with those of developed countries,"
said Fu Tao, secretary-general of the China Alliance of Housing
Enterprises.
Fu said the development
of alliances among domestic enterprises would help them adopt
more advanced technology and reduce building costs.
(China Daily 03/23/2001)
|