Can China's new policy in support of renting drive down house prices?

Speakers: Sam Duckett and Lu Sirui

[ Photo: From Baidu.com]

For consumers, particularly those living in big cities, afford a house is one of the biggest challenges, as policymakers strive to maintain a healthy growth in the housing market while keeping it from overheating.

Among the multiple factors that pressure people in China to buy property rather than rent, having access to social welfare reserved for local home owners has been one of the biggest drivers behind surging prices in first-tier megacities.

It has also become a significant wedge between local residents, migrant workers, and expats who terminally want to live in China.

A new policy aiming to tackle perceived unfairness and inequality has been on trial in south China's Guangzhou, and other tier one cities are likely to follow suit.

The measures are expected to cool the heated market by supporting tenants and boosting the rental sector as an alternative to owning a property.

But will the new policy achieve this? 

The audio clip is from Studio+, produced by CRI.