Shanghai to build more budget and low-rent houses in 2009

In the 2009 housing construction plan released by the Shanghai Housing, Land and Resource Administration Bureau on Wednesday the city stated the construction of indemnificatory housing, or budget and low-rent houses, will account for 45% of the whole upcoming construction.

According to the plan, construction of 18 million square meters of new houses will launched next year, of which 4 million square meters will be budget and low-rent houses.

About 22 million square meters of new houses will be completed in 2009, while 24 million square meters are expected to be sold once approved. About 10 or 12 million square meters will be launched for residential use.

Approximately 20,000 families will benefit from to the low-rent houses supplied by the government, which will make the total household benefiting from the low-rent housing plan to 70,000.

Analysts say the plan aims at balancing the demand and supply in the real estate market so as to bring down the city's soaring property prices.