REITs to bolster public sector rental apartment market

Government considering affordable housing pilot in top cities, says report

Real Estate Investment Trusts appear to have got a fresh lease of life in China, with the government planning to grant approval for similar programs in public rental housing projects in first-tier cities, a news report said on Thursday.

The Ministry of Housing and Urban-Rural Development has selected four cities - Beijing, Shanghai, Guangzhou and Shenzhen - to pilot the REIT program for construction of affordable houses for rent, the Xinhua-affiliated Economic Information Daily said on Thursday, citing industry sources. Preliminary plans formulated by the four cities have already been submitted to the ministry for final deliberations, it said.