A CIRCULAR has been issued to various government departments informing cadres that welfare housing will soon be abolished and the rental fee of their state-owned apartments will rise fourfold in the second half of the year.
The move sweeps away the policy of providing heavily subsidised housing to workers of state enterprises and cadres.
State employees will not be entitled to receive rental accommodation from their work units and will be encouraged to buy their own apartments.
Government staff will receive subsidies from their units to help them buy property.
The circular said the subsidy would be 300 yuan (HK$280) a month and state employees would not be allowed to use the money for other purposes.
Those who are not prepared to buy apartments will be required to pay higher rents.
The circular said rent, which amounts to about five per cent of a family's total income, would rise to about 15 per cent of income.
