China's State Council revealed an urbanization report Sunday, saying it plans on building new transportation and infrastructure to accommodate more than 100 million people, mostly farmers, who will be moving into major cities as part of the country's modernization plan, according to several news reports.
The urbanization plan for the period of 2014 to 2020 asserts the need to help farmers move into the cities and help them gain access to amenities like medical coverage, education and city pensions, reports the Wall Street Journal.
According to The Associated Press, by 2020, China aims to move more than 90 million rural people into its cities. In 2012, about 52.6 percent of the Chinese population was living in cities. Currently, the rate is 53.7 and the country hopes to reach 60 percent by 2020.
"Domestic demand is the fundamental impetus for China's development, and the greatest potential for expanding domestic demand lies in urbanization," according to the National New-type Urbanization Plan (2014-2020), reports the Xinhua Net Agency.
Other highlights of the plan
- About 100 million migrants and permanent residents will be given "urbanite" status.
- The country plans on increasing the number and zones of small and medium cities to decentralize living and improve the functioning of small towns.
- China hopes to adopt green methods into its urban development model.
- Some housing restrictions will be eased in some small cities.
- Farmers will also be given more flexibility in selling or leasing their lands.
While China is aiming at urbanizing its population, its housing market is still hot. The government has been imposing several regulations to control the inflated prices and imbalance between demand and supply in the sector.
The government recently proposed to build 36 million affordable homes by 2015, reports CNN.
"Despite the speed of urbanization, there are not enough homes for everyone. It's easy to understand why: Workers are leaving the suburbs and rural areas to seek a new life in the bright lights of the city. As a consequence, demand has pushed house prices to rise as high as the expanding skyline," Isa Soares writes for CNN.
Although the effects of the plan on the housing market are uncertain, it's been good for investors so far. Chinese shares went up Monday, with special gains in the construction and property sector posting strong figures, reports Reuters.
