Subsidized housing offers opportunity and risk to property firms

A massive urban renewal project could stabilize growth and raise living standards, but it poses problems for real estate developers, report Yao Jing and Zheng Yangpeng.

The central government's subsidized housing program, which calls for the construction this year of 7 million affordable apartments nationwide, is posing challenges to a property sector that is already under pressure from sinking home prices.

Some analysts have said that getting involved in these projects is away to help developers during difficult times. But it is unclear whether the program can help revitalize the sluggish real estate sector.