Reflection on the New Affordable and Commercial Housing Binding Plan

摘要

The affordable housing is an issue to which Chinese governments have been paying great attention. Facing the challenge of building huge amount of affordable houses in 2011, many local governments are trying to lure developers into the construction. One of the current policies is the so-called “bid for affordable housing construction ratio under capped land price” plan, which binds affordable housing and commercial housing on the same land. Due to the short term effect, this plan is likely to be widely applied in lots of cities. However, this plan will also bring forth potential problems in the long term. This paper firstly introduces the background of this plan, and then makes analysis of its benefit in the short run and the potential problems in the long run. The purpose of this paper is to remind governments of their roles and functions in providing affordable houses.