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China's "shanty-town" renovation plan...>

CHINA PRESS
CHINA PRESS: China's "shanty-town" renovation plan could help reduce the current
property inventory of around 300 million square meters as the government makes
efforts in compensating farmers with "monetary tools" instead of building new
houses for them, China Business News reported late Sunday night. The financial
news provider cited a report by Mingsheng Securities saying that the Chinese
government has increasingly been offering farmers whose houses are targeted for
demolition money or existing homes rather than new houses in compensation. This
method is now being used in 60% of cases, up from 48.5% last year and 29.9% in
2015, in an effort to tamp down housing stocks, especially in lower-tier Chinese
cities where inventories are relatively high, the report said. The method of
offering cash or existing homes to displaced farmers is beneficial for speeding
up sales and reducing housing inventories, although it may not directly increase
new housing starts, Wang Tao, chief China analyst at UBS, was quoted as saying
in the report. (China Business News)

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