Beijing Municipal Commission of Planning and Natural Resources (the “Commission”) targets to supply 131 plots of residential lands for public housing within this year. Among the supply in the pipeline, nearly 70% or equivalent to 212 hectares of land will be used to accommodate those with housing difficulties including newcomers, young adults, talents in the technology field and so on, while the remaining 30% will accommodate families with housing difficulties. Particularly, nearly 85% of the land supply will be clustered in “Three Cities and One District” (三城一区), namely Zhongguancun Science City (中关村科学城), Huairou Science City (怀柔科学城), Future Science City (未来科学城) and Beijing Yizhuang Economic and Technological Development Area (北京亦庄经济技术开发区) to meet the housing demand of the working population in the area and optimize the urban spatial layout. As of the end of August 2021, the Commission has supplied 76 plots, completing 53% of the targeted supply.
Public housing in all direct administered municipalities and major metropolitans with large population influx has been recently added into the infrastructure REITs pilot program, according to the No. 958 Notice released by National Development and Reform Committee.
The development of REITs in China has reached a golden age from both the demand and supply side. As the municipal government to promote the development of public housing, it will lead to more talent inflow, while resolving those with housing difficulties. On one hand, the implementation of subsidized housing REITs will likely promote the overall operation of public housing, facilitating the urban regeneration of outdated projects while boosting the overall quality of public housing market. REITs, as a financial instrument, offers more financing options for the public housing market, allowing social capital to better serve the public housing market while providing investors with more stable return.