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Developers face order to build cheap flats

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THE Chinese Government is set to force developers to include substantial numbers of cheap flats in future residential projects, officials have confirmed.

Plans being drawn up by mainland authorities could mean companies wanting to build luxury residential projects having to use up to 20 per cent of the site for mass public housing.

And developers of up-market commercial blocks, shops or hotels would have to pay local authorities extra money, which would be spent on public flats.

The measures are thought to be part of a series of reforms being scrutinised at the Ministry of Construction in Beijing. during a visit to Hong Kong last month, Construction Minister Hou Jie revealed that new regulations to encourage developers to enter the mass market would come into force by the end of the year.

Ministry officials outlined the proposals at a conference in the capital but emphasised that they were still being considered.

Hou Hungying, of the Department of Real Estate Management, said the 20 per cent figure would be enforced.

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