Shenzhen’s government has released a formal notice of its intention to reform the city’s housing market, which will see 1.7 million new homes built over the remainder of the GBA masterplan ending in 2035.
According to local media, Shenzhen will bring this supply onto the market in a phased, manner, balancing the need for government guidance and market participation. At its core, it seems there is only one red line: the supply of land will ensure a strict 40:60 ratio is maintained between public and commercial housing. Public housing will include apartments set aside for “talent”, as well as subsidized ownership and rentals.
In short, Shenzhen is going to be more like Singapore and nothing like Hong Kong.
The “Interim Provisions”, which have been released for public comment – no, really, they have – clarify that the government will “comprehensively guide” the supply of various types of housing land, yet will mainly undertake the task of renting public housing land. In order to “mobilize the enthusiasm of market participants” and adhere to the basic principle of “benefit sharing,” market entities (developers) will be responsible for building public housing for sale, yet “adopting agreements and transfer in accordance with national policies”. This is to encourage market participants to “actively participate,” understand.
Watch this space.