Funds a challenge for affordable homes: Cushman

BEIJING - China's biggest challenge in its plan to build 36 million affordable homes over five years is the ability to tap funding and draw developers to work on the projects, Cushman & Wakefield Inc said.

The nation needs 1.3 trillion yuan ($198 billion) for its affordable homes this year, excluding land costs, Housing and Urban-Rural Development Vice-Minister Qi Ji said on March 9. The central and local governments will provide 500 billion yuan, Qi said.

"Money is going to be a challenge," Andy Zhang, China managing director for the New York-based real estate company, said in an interview in Beijing on Wednesday. "The local governments still rely heavily on land sales for their revenue, while the central government requires them to resolve the financing of those homes."