2024 is set to be a transformative year for major Chinese cities as China accelerates the renovation of urban informal settlements. By the end of January, several cities have announced the implementation and allocation of the first special loans dedicated to this significant initiative.
These special loans are designed to support initial costs, compensation, and the construction of resettlement housing, along with associated infrastructure for the renovation projects. Operating on a closed-loop, dedicated basis, the financing is low-cost and efficient, adhering to the principle of break-even.
On January 30, the China Development Bank issued 9.08 billion yuan ($1.26 billion) in special loans dedicated to village renovation projects. This substantial funding covers nearly 100 projects across cities including Guangzhou, Zhengzhou, and Xi'an, directly benefiting over 100,000 residents and facilitating the construction of 238,400 resettlement housing units.
Xi'an itself received 500 million yuan in special loans on the same date, earmarked for two specific village renovation projects. The Xi'an Housing and Construction Bureau emphasized their commitment to actively and steadily promoting the initiative, highlighting its potential to enhance urban functionality and stimulate economic growth.
Looking ahead, Huang Yu, CEO of China Index Holdings, predicts that informal settlement renovations within cities will drive an investment scale equivalent to approximately 1 billion square meters over the next five years. This translates to an average annual creation of 44 million square meters in new residential demand. The total investment, including land acquisition and construction for these renovations, is estimated to reach a staggering 10 trillion yuan, Huang stated at a China News Services event in January.
Reference(s):
cgtn.com
