Friday, March 25, 2011

China Affordable Housing Expected Shortfall on Money and Profit

The lack of affordable housing doesn't affect the bubble, except as a foil to claim there is demand, but it does affect social stability, which could burst the bubble.

China’s Housing Plan to Face Financing Challenge, Cushman Says

China’s biggest challenge in its plan to build 36 million affordable homes over five years is the ability to tap funding and draw developers to work on the projects, Cushman & Wakefield Inc. said.

The nation needs 1.3 trillion yuan ($198 billion) for its affordable homes this year, excluding land costs, Housing and Urban-Rural Development Vice Minister Qi Ji said on March 9. The central and local governments will only provide 500 billion yuan, Qi said.

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