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China Proposes A Fix For Its Crashing Housing Market: “Transplant” 100 Million Farmers Into Its Cities

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Starting next year, China will roll out policy to transform 100 million farmers into registered urban residents

By Tyler Durden
Zero Hedge
Dec 24, 2015

Excerpt:

Beijing is hoping to “transplant” 100 million farmers into registered urban residents, who no longer being migrant workers, will rush to buy real estate in the process soaking up some of the millions of vacant square meters of excess capacity real estate. At least that’s how the thinking goes: “attendees of the meeting agreed that rural residents that move to urban areas should be allowed to register as residents, which would encourage them to buy homes in the city. Property developers have been advised to reduce home prices, according to the statement.”

More from Xinhua:

— Nearly 55 percent of the population live in cities but less than 40 percent are registered to do so. There are around 300 million migrant workers but most are denied “hukou” (official residence status). In addition to housing rights, a hukou gives the holder equal employment rights and social security services, and their children are allowed to be enrolled in city schools. —

Starting next year, China will roll out policy to transform 100 million farmers into registered urban residents, according to Xu Shaoshi, head of the National Development and Reform Commission, on Tuesday. No deadline for completion was specified.

The punchline: “Ni Pengfei, a researcher at the Chinese Academy of Social Sciences, estimated that if 70 percent of migrant workers buy homes in the cities, it would solve the 2.2 billion square meters of housing inventory.”

Read the complete article here.