Measures for improving housing affordability in China

Comments on Li Shi “Social security and housing the poor in China”, 28/01/2011, http://www.eastasiaforum.org/2011/01/28/social-security-and-housing-the-poor-in-china/

AS Professor Li said, there are no easy solutions to social affordable housing.

Beyond the three schemes, I think the government should consider a specific tax that targets the wasteful empty properties that exist in many Chinese cities, as opposed to the currently various proposed property taxes. The huge waste of housing resources contrasts with the housing difficulties and is probably very uncommon in other countries. If the many empty properties can be rented out, then it would be easier for people to rent a property at more affordable rents.

That tax could be supplemented with an excessive resource using tax that targets some people who may spread their family members too thinly to occupy more properties that they would not normally do if no resource wasting tax is in place.

On top of this, low income tax reduction and a housing subsidy for low income people can be implemented.
 
PS: both taxes can assist in reining in the run away housing market in China.