Shenzhen to step up land supply after Chinese Vice-Premier Han Zheng stresses need to address housing shortage
- Announcement follows visit by Zheng, who was on an inspection tour of China’s southern Guangdong province from Friday to Sunday
- Local governments will adhere to central government’s direction, which is houses are for living, not for speculation: Moody’s analyst
Shenzhen says it plans to add 1,130 hectares of land this year, a third of it for residential purposes, which will help it rein in runaway housing prices.
The announcement on Sunday followed a rare visit by Chinese Vice-Premier Han Zheng, who was on an inspection tour of China’s southern Guangdong province from Friday to Sunday. According to the state-owned Xinhua news agency, he stressed the need to address housing issues in China’s big cities during the visit.
“The increased land supply in Shenzhen is part of the government’s continuous efforts to control surging property prices, and is in line with the new centralised land supply policy,” said Danny Chan, an analyst at Moody’s Investors Service. “Housing affordability is one of the key considerations for the local governments in adjusting their regulatory measures. They will adhere to the central government’s direction, which is ‘houses are for living, not for speculation’.”
The city plans to add 363.3 hectares for residential purposes. Of these, 37 hectares will be set aside for rental use. The planned increase is 24 per cent higher compared with last year’s increment of 293.2 hectares, and 142 per cent higher than 2019’s increment of 150 hectares.
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