Shanghai adds land supply for 20,000 rental homes to bring property prices under control
The city plans to supply 700,000 rental homes from 2016 to 2020
Shanghai’s government is offering six more parcels of land for rental home development, increasing the pace of land supply in a bid to rein in skyrocketing property prices.
The six plots put up by the municipal government for sale this week total 166,300 square metres with a combined starting bid price of 1.94 billion yuan (US$294 million). This brings the total land supply for residential leasing development since July 24, when the first such land was offered, to 1.26 million square metres or 28.9 per cent of the 4.36 million square metres the city has supplied so far this year.
The supply of land in the past four months was sufficient to build 20,000 units.
According to a study conducted by the property consultancy Homelink’s Shanghai-based research team, if such pace of land supply was maintained throughout the year, 20,000 rental homes could be provided per year.
Shanghai’s government has an ambitious goal to provide 700,000 rental homes from 2016 to 2020, which would account for 41 per cent of new supply on the market.