Xiamen unveils scheme to boost affordable housing programme

Municipal authorities in Xiamen , Fujian , have unveiled a housing scheme to widen access to affordable homes, a move in line with efforts to shore up the broader mainland economy.

The initiative is the first of its kind on the mainland and allows all prospective homebuyers to apply for government-initiated schemes regardless of their income level and family assets, according to Gao Shirui of a government office overseeing welfare housing.

Affordable housing programmes were introduced on the mainland in 1998 and modelled on public schemes in Hong Kong. But the initiatives have failed to meet public expectations in many cities because of the lack of government commitment and oversight at lower levels.

Mr Gao said families with an annual household income of less than 50,000 yuan (HK$56,600) made up about 40 per cent of Xiamen's registered population, and most of them had benefited from the affordable housing schemes.

However, municipal research found that a significant number of households could neither qualify for the schemes nor afford more expensive, commercially developed homes.

Under the scheme, residents with a Xiamen household registration are allowed to buy a home of up to 60 square metres at 7,000 yuan per square metre in downtown areas, where most housing sells for more than 10,000 yuan per square metre.

Homeowners would have to hold onto their properties for at least five years or surrender 60 per cent of profit on the sale of the property to the government.