Xiongan New Area in North China's Hebei province will provide rental housing for entrepreneurs and employees from other parts of the nation while putting certain restrictions on housing sales, as it moves to curb real estate speculation, a local regulatory official said on Sunday.
According to the official WeChat account for Xiongan, Liu Baoling, executive deputy director of the administrative committee of Xiongan New Area, the sale of houses in Xiongan would be restricted for a period of time, but those that had been rented for more than 10 years would be allowed to go on sale.
"Houses in Xiongan New Area are built for living, not for speculation," said Liu. "They should meet the needs of various consuming groups and leave no room for speculation, so a rental-sale integrated housing policy will be adopted."
Moreover, the government would be given priority to purchase houses that were on the market, at a price slightly higher than the bank loan principal and interest for the same period, Liu said.
Xiongan would not follow the outdated urban development model dominated by the real estate industry, Liu stated. It would be innovative and work to create a good working and living environment for talented people from all walks of life, especially young entrepreneurs, he explained.
China announced plans in April to establish the Xiongan New Area, a new economic zone about 100 kilometers southwest of Beijing. It covers Hebei's Xiongxian, Rongcheng and Anxin counties.