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Xiongan New Area in North China’s Hebei province is exploring the establishment of a housing system, where renting homes will be the primary approach rather than purchasing. This is a move to control housing prices and meet the housing needs of all people in the area.
“The system is good for healthy urban development. It can help our people gain a stronger sense of fulfillment and happiness, as well as promote Xiongan to attract advanced development resources,” Liu Baoling, executive deputy director of the administrative committee of Xiongan, said at a seminar about the topic on Saturday.
According to Liu, the system will be point-based and apply to both newcomers and natives on a voluntary basis.
Those who are involved in the system can gain and accumulate points based on various aspects, including their behavior during the whole renting process, personal credit, conduct for the public benefit and protecting the environment, said Xu Xiaowei, general manger of Xiongan Lvyan Think-tank Co, which is participating in a study of the point-based system for renting homes.
The points will be an important reference for tenants or landlords to apply for further rent-related services and purchase homes for the long term, Xu said.
After they have lived and worked in Xiongan for a certain number of years, they can buy the homes but cannot sell them within a certain period, according to a past report by the Xiongan official Wechat account.
The report said even if they are allowed to sell the house after a time limit, they should sell it to the government first at a price a little higher than the cost, in order to avoid real estate speculation.
“We must not forget that housing is for living, not for speculation,” said the report of the 19th National Congress of the Communist Party of China, released in October.
Liu said the housing system in Xiongan will keep the terms of the report in mind and make efforts to establish a housing system that ensures supply through multiple sources, provides housing support through multiple channels, and encourages both housing purchases and renting, with renting being the primary mode.