China to increase affordable housing

The Chinese government is acting to control soaring housing prices in major cities. The country's property market soared in 2009, with property sales jumping by more than half, and property investment climbing nearly 20 percent.

The Ministry of Housing and Urban-rural Construction says it will step up the supply of affordable housing to meet low-income people's demand, and curb speculative investment.

Yu Liru, an ordinary salesperson in Beijing, has been living in a rented flat. Soaring house prices are making his dream of owning an apartment in the city ever more distant.

Yu Liru said, "I wish property prices wouldn't rise so fast."

One method the government is using to control surging house prices is to increase the supply of affordable housing.

Qi Ji, vice minister of Housing & U/R construction, said, "We will construct more than 6 million units of affordable housing this year. It will quicken the pace to meet low income families' housing demand."

The scale of affordable housing supply will be twice that of last year. Investment in affordable housing will reach hundreds of billions of yuan. The Ministry also says it will curb speculative investment in the property sector.

Qi Ji said, "The main function of property is to meet people's housing demand. We should curb investment and speculation in the property market."

The country made key changes to its real estate polices over the past month. It has also ended some preferential real estate policies, while continuing to increase land supply.