Editorial | Shenzhen shows way forward on homes
- In a change of direction to avoid Hong Kong’s property woes that have been largely blamed for social unrest, the city is now taking the path to affordable public housing
What set Shenzhen apart during transformation to a metropolis of 12 million was that it was positioned to learn from Hong Kong, including housing policy.
The approach of selling land to developers for residential and commercial development was eventually replicated across the country. What sets Shenzhen apart now is that it plans to head in another direction to avoid Hong Kong’s property woes, which officials largely blame for the current social unrest.
The focus now is on affordable public homes for professionals and low-income residents, with a combined public-private sector target of 1 million between 2018 and 2035.
Shenzhen’s rapid expansion created distortions in the property market, such as pockets of low-income housing in prime city centre locations.
In the past it had tried to follow Hong Kong and left it to the private sector and market forces to solve the problem. The strategy basically was to redevelop prime land in the hope that developers would build affordable housing further out for displaced tenants.