It is reported that China is likely to slow the construction of the affordable homes in 2012 probably targeting at 8 million units.

Hong Kong Economic Journal reported that Chinese local governments are likely to slow the construction of the affordable housing projects, one of the central government efforts to rein in the real estate sector.

The Chinese government pledged earlier this year to start construction of 10 million affordable homes for the poor and 36 million during the 12th Five-Year period (2011-2015).

Quoting a foreign media report, the newspaper also said that China may slash its target for the housing project in 2012 by 20% from this year to 8 million units. It also cited analysts as reporting that even the 10 million units of affordable housing project this year would be hard to be achieved, given tightening credit policies and stockpiling local debts which hit CNY 10.7 trillion by the end of 2010.

(Sourced from english.caijing.com.cn)