Beijing municipality is intent upon dramatically expanding the supply of joint property rights housing over the upcoming year, as part of efforts address an affordable home supply shortage and contain its overheating real estate market.
The latest data from Centaline property indicates that over 40,000 joint property rights homes (共有产权房) are set to hit Beijing’s housing market in the next twelve months.
This year alone Beijing has approved a total of 65 residential land lots, of which 2.45 million square metres will be used for joint property rights housing, which should be enough to supply around 30,000 dwellings.
One outstanding example of Beijing’s efforts to expand affordable home supply lies in Pinggu district, whose first joint property rights housing project is expected to supply a record-breaking 1,305 dwellings to lower income residents.
The Shandong Zhuangzhen Xilijin Village (山东庄镇西沥津村) will have a total building floorspace of 126,600 square metres, divided into 991 dwellings with an area of approximately 90 square metres, 308 dwellings with an area of approximately 120 square metres, and six with an area of approximately 1 square metre, for a total of 1306 dwellings and an average sales price of 14,500 yuan per square metre.
Zhang Dawei said the new project marked a sizeable increase in supply, given that that Beijing’s two previous two joint property rights projects each accounted for under 500 dwellings.
The number of dwellings in Xilijin Village is equal to nearly half the annual transaction volume for Pinggu district, and is expected to have a major impact upon the local market.
While joint property rights housing will help meet inelastic demand for housing in the Chinese capital, Zhang expects the number of purchase applications in the Pinggu district will be lower than those for Beijing’s two preceding joint property rights housing projects in the Chaoyang and Shunyi districts.
Beijing’s expansion of joint property rights housing comes as municipal governments around China endeavour to contain their real estate markets with a range of measures including lending quotas, purchase and sales restrictions, and the expansion of urban leasing markets.