More Beijing Residents Give Up Affordable Housing Rights

The previous anecdotes of Beijing residents giving up their affordable housing rights were on target. Of 300 people who won the latest lottery, only 47 chose the affordable housing, less than 16% of winners. Very important to note is where the housing is located though. A friend of mine won the recent lottery in the western part of Chaoyang (close to the city center) and I suspect 100% of the people took the housing there because it is impossible to buy cheaper. However, the project in this case is 15 km south of the sixth ring road, only 15 km from Langfang.

Home prices are moving lower, but the main story here is that once again, government fails. Affordable housing projects in Beijing are coming to market in greater numbers at a time of already rising inventory. Sales volume is down and new projects are coming to market in large numbers. Some of the projects are in undesireable locations, so far away from the city center that they might as well be in Hebei province. If you live in Hebei province, you don't need to enter a lottery in order to obtain a license plate.

北京自住房出现大比例弃购：前300中签号仅47户选房

This news may be one reason why Beijing is considering letting more buyers into the affordable housing market.

Poor take priority with social housing

A draft regulation on affordable housing has been stirring controversy in Beijing over recent days. Much of the fury is focused on a proposed rule that would cancel income limits normally imposed on social housing applicants.