How can Guangzhou achieve the top supply of affordable housing in the country during the 14th Five Year Plan?

2023-09-06

Recently, a meeting was held to promote the transformation of urban villages in Guangzhou. At the meeting, Guangzhou Anju Group Co., Ltd. was established, and promoting these two strategic events has profound significance for the transformation and development of this mega city. Recently, a video and telephone conference was held in Beijing on the planning and construction of affordable housing. The conference proposed to use reform and innovation methods to focus on solving a series of key issues such as how much to build, how to build, how to balance funds, how to allocate funds, and how to manage, to ensure good work and achieve sustainable development, and better meet the people's desire for "housing". As a super city with a continuous net inflow of population, Guangzhou's population has increased by 6 million in the past decade. Only by retaining the demographic and talent dividends can the city's core competitiveness be stabilized. During the 14th Five Year Plan period, Guangzhou proposed to add 660000 units of affordable housing, ranking first in supply among first tier cities. Faced with a huge supply, Guangzhou has raised funds through multiple channels to build affordable housing, matching the demand for affordable housing and stabilizing the pace of new housing additions. Where does the room come from? Who will prepare for the construction? It is the primary issue faced by Guangzhou in fulfilling its commitment to housing. Guangzhou Anju Group is a municipal functional state-owned company specifically responsible for investment, financing, construction, and operation management of affordable housing. Next, the company will explore the construction of a housing security operation system with synchronous development of three main businesses: public rental housing, affordable rental housing, and shared property housing. It will also build a housing leasing fund, smart livable platform, and other auxiliary engines to form a market-oriented, professional, and standardized operation mode. Previously, the fundraising and construction of affordable housing in Guangzhou were mainly coordinated and implemented by the Municipal Housing Security Office. In 2017, Guangzhou strengthened the management of affordable housing projects and established a city wide rental management platform for affordable housing. In the same year, Guangzhou Urban Investment Housing Leasing Development Investment Co., Ltd. and the Pearl River Housing Leasing Development Investment Co., Ltd. were established to coordinate the raising, construction and operation of affordable housing according to different areas. Compared to the newly established Guangzhou Anju Group, the above platform companies are more focused on project construction and management, belonging to the role of "steward" in asset management, and have less involvement in construction financing, housing fundraising, and other aspects. The identity of Guangzhou Anju Group is even broader. The company will expand its channels for the construction of affordable housing, through multiple channels such as urban village renovation and transformation, whole rental operation of existing housing resources, "work to rent", "commercial to rent", industrial park construction, new rental housing on collective land, and public land transfer construction. In addition, Anju Group will actively participate in the investment and financing of affordable housing projects, relying on the issuance of public funds, special bonds, financial loans, or the use of policy based financial tools. In accordance with the principles of enterprise management, market-oriented operation, and sustainable development, Anju Group will benchmark against the leading large-scale integrated whole chain Anju industry group in China. That is to say, compared to the "butler" role of the platform company mentioned above, Guangzhou Anju Group can have multiple identities of "owner" and "butler", responsible for affordable housing work throughout the entire chain, truly operating this work as a complex and systematic engineering. At present, Guangzhou has preliminarily formed various financing methods for affordable rental housing, including "industry to rent", "commercial to rent", industrial park construction, and enterprises and institutions

Edit:Hu Sen Ming    Responsible editor:Li Xi

Source:GD TODAY

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