Building 36 million affordable apartments to boost China’s economy | Biz weekly

Building 36 million affordable  apartments to boost China’s economyChina is hoping to stimulate growth of its economy by building cheap housing. In a large effort to build subsidized housing for the urban poor, 36 million affordable apartments are to be completed by the end of 2015.

The market of real estate in China is slowing down. Home sales dropped 18 percent in the first quarter, while housing prices in more than half of the top 70 cities fell in March, the sixth straight month of declines for Beijing, Shanghai, Guangzhou, and Shenzhen.

Social housing can help give the growing numbers of low-income workers and pensioners affordable places to live. But the plan can also help turn around the negative trend in the properties and construction market. A building plan like the can boost the steel, cement, copper, and aluminum industries.

Is the plan going to work? A report by Bloomberg Businessweek is analysing the doubts that some experts have. The “5 trillion yuan program to build affordable housing faces so many obstacles that it may not boost the real estate market as hoped”, Businessweek’s Dexter Roberts reports.

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