Guizhou Social Housing Breaks New Ground.doc

1、1Guizhou Social Housing Breaks New GroundIT is early morning on March 26,2011, and the construction siteof Yuan New City is surroundedby people, the crowd many rowsdeep, and nlost of the onlookers veryexcited indeed. Lines of orange bulldozers and excavators stand alongside,ready for action. This is

2、 the ground-breaking ceremony of a project to build one millionsquare meters of public rental houses inGuiyang, capital of Guizhou Province.Within two years 16,000 households inthe city will move into their new homes.This RMB 2.5 billion project is Guizhousfirst public-rental housing project andthe

3、curtain raiser for the regions socialhousing program under the 12th Fiveyear Plan. Corporate Social Responsibility Zhongtian Urban Development GroupCo., Ltd. is the only publicly listed realestate company in Guizhou Province. Itschairman, Luo Yuping, is often askedwhy the group has got involved in t

4、hegovernment-initiated low-income housing project 2rather than pursuing moreprofitable ventures. He replies that Zhongtian is a company with its roots in Guizhou and thatits 30 years of growth owes much tothe great support of local people. Withthe corporate value of “harmony andresponsibility,“ the

5、group participatesin cbaritable endeavors. In recent yearsthe company has donated about RMB15o million to philanthropic causes.This latest example-low-income housing construction-is part of its philosophy of contributing to communities andshouldering social responsibility. As a philanthropic entrepr

6、eneur,Luo is clear that low-income housingis a long-term project, demanding sustained efforts in construction, distribution, leasing and property management.However, Zhongtian will manage anddevelop the project as an undertaking. Itis, moreover, an active attempt to realizea “government-initiated, c

7、ommerciallyoperated“ model. Zhongtian will bring to bear itstechnology, capital and managementstrengths. As regards project planning,the company is particularly keen to balance economic gains with social and environinental benefits, and to take up theleast amount of land without skimpingon building

8、ancillary facilities. Friendlyenvironment, safe and energy-savingbuildings were top considerations in theoverall design. As to construction, 3thecompany gave supreme priority to qnality and strict control over every processto ensure high-quality living conditions. Zhongtian has signed agreements wit

9、hGuizhou Provincial Government, marking its cominitment to the constructionof social housing, slum reconstrnctionand provision of ancillary facilities. Inthe five years starting in 2011 Zhongtianplans to invest about RMB 20 billionto build 10 million square meters or200,000 units of low-income housi

10、ng.Some three million square meters will bestarted in 2011, four million in 2012 andthree million in 2013. Government Responsibility According to Li Zaiyong, mayor of Guiyang, in recent years the city hasbeen exploring a new approach to constructing low-income housing in lessdeveloped Western China.

11、 It has established a complete low-income housingsystem covering both units for lease andpurchase and a multi-channel fundingmechanism to support it. Already, over11 million square meters of affordablehousing have been constructed and soldto 120,000 households. And its lowrental housing program prov

12、ides homesto 22,630 families. 4In Guiyang, social housing is dividedinto two categories-low-rental andpublic-rental, which respectively targetthe poorest households and those ofbetter but still modest incomes. Housing subsidies come in graded amountsaccording to income levels of recipientfamilies. A

13、nd private owners are encouraged to place their idle flats in thegovernments housing pool for rent toincrease home supply for needy families. Guiyang has also created new financing methods: it offers incentivesfor large-scale real estate enterprisesto develop, construct and operate lowincome housing

14、 projects; it also allowsfarmers to invest their lands as sharesinto developments on the citys outskirts. In the period from 2011 to 2015Guiyang aims to develop 8.5 millionsquare meters of public rental housingby soliciting funds from varied sonrces,which will improve the living conditionsof 270,000

15、 families. The sprawling Yuan New City ineludes two public-rental housing sections: Yuan of 200,000 square metersand Anjing of 800,000 square meters.Both communities are conveniently integrated with the citys public transportand utility networks. New roads arebuilt around them, extending to otherpar

16、ts of the city. And the hot-springresort nearby adds commercial valueto the project. The two developmentsare 5expected to be sustainable, wellbuilt and landscaped, well equipped,providing every facility with a beautifnlenvironment. Hopes and Dreams Fulfilled The ground-breaking ceremony ofYuan New C

17、ity attracted floods of localpeople, many of them would-be housebnyers. They looked on, full of hope anddelight at the prospect of a new home. They could see from the blueprint justhow well-equipped the residential district would be-with a large green-fieldarea, fitness areas, wheelchair ramps,parki

18、ng lots and refuse depots. “Way better than youd expect for a public rentalproject,“ enthused Liu Xiaoling. Ms. Liu lives in a very modest onebedroom house together with her husband, her parents-in-law and a twoyear-old son. “We portioned off partof the living room as a room for my inlaws, and my so

19、n sleeps with my husband and me.“ Harassed by crampedliving space and frequently blockeddrains, Lin was always thinking aboutmoving somewhere better, but the familys economic circumstances pushedher dream further and further away. 6In 20ll Guiyang increased the supply of social housing and relaxed t

20、he eligibility criteria. The news gave Liusfamily hope-under the new policy,she qualifies to apply for a public-rentalhouse. “Previously I thought public-rentalhouses were humble, without landscaping, support facilities or perhaps even noelevators.“ Reading about the Yuan ceremony in the paper, Liu

21、rushed over thereat the crack of dawn to see what the newhouses would look like. The blueprintleft her rapturous-it was everything sheimagined for a new home. “I wish I couldput in my application right now!“ Commitment to Fairness Public rental honses are intended forlower income families. A remote

22、location would increase residents transportation costs, creating a drain on theirmodest finances. The locations weretherefore chosen for the best proximity to Guiyangs downtown and for theeasiest transportation access. They aretotally the same as normal commercialbuildings in terms of quality and an

23、cillary facilities, underscoring the cominitment to fairness. 7Where will public rental honses bebuilt? For a real estate company, this isa huge profit-sensitive issue. The publicrental buildings in Yuan and Anjingcommunities are placed in the primelocations in the New City, which also ineludes comm

24、ercial housing sections. In fact, the opening of a couple ofthoroughfares last year in the regionpushed up local house prices greatly.But Zhongtian still decided to constructpublic-rental houses in the best location, despite the relatively small return.“We are shouldering our social responsibility, and practicing a local companys commitment to local residents,“said Zhang Zhi, vice president of thegroup.