China plans to take a page from Singapore’s social housing model to help end a multi-year property slump that’s hammered the nation’s consumer confidence and weighed on economic growth.
Beijing has in recent weeks named two "big projects” as the center of its housing policy: building social housing and renovating run-down inner city districts. The projects have top-level political backing and could soon have 1 trillion yuan ($138 billion) or more of central government support behind them.
Authorities are considering offering cheap central bank loans to key state-owned policy banks to fund the projects, it was reported this week. The amount under discussion — which could be increased through further leverage and other funding — amounts to the equivalent of about 10% of annual new home sales.