(Photo : House construction in China)

The Ministry of Housing and Urban-Rural Development announced that China's goal of building 6.3 million affordable houses this year is well on its schedule.

Like Us on Facebook

According to the ministry, a total of 5.6 million affordable houses are being constructed nationwide, with 3.55 million homes almost completed, as of the end of August. That means the Chinese government is now 89 per cent of its annual goal.

The target of building 6.3 million affordable houses this year is part of the government's 12^th five-year plan, covering 2011 to 2015, to construct 36 million affordable homes for low-income families.

$116 Billion Investment this Year

Xinhua News Agency reported that the government has allocated CNY720 billion, or $116.7 billion, this year to build 6.3 million houses, which is part of the affordable housing program it approved and launched in 1999.

State-owned enterprises (SOEs) have been ordered to be involved actively in building the affordable houses as the government looks to allow more mid- and low-income residents to have access to housing.

The program is designed to make housing accessible and affordable to families who cannot afford to buy houses in the city, where real estate prices are skyrocketing over the years.

Prices of Commercial Housing Continue to Rise

Recent data showed that China's attempt to cool down the housing market have not done much effect because prices of commercial housing continue to rise. Prices of new houses in July rose in 69 of 70 major cities, compared with a year ago, official data revealed.

Beijing, Shanghai and Guangzhou, China's major cities, showed the largest gains in home prices in July. China has been trying to cool down rising property prices for the past two years but figures still point to a rising housing cost.

Liu Jianwei, analyst at the National Bureau of Statistics, said the continued rise in home prices is due to home buyer demand as well as recent land price gains.