Beijing, Aug 26 (Xinhua) – Deputy Minister of Housing and Urban-Rural Development, Dong Jianguo, recently mentioned in a press conference that China is studying the establishment of a housing health check, housing pension, and housing insurance system to build a long-term mechanism for the safe management of properties throughout their entire lifecycle. Among these, the housing pension has attracted significant attention. But why do houses need pensions, and where does this pension money come from?
As of the end of 2022, nearly 20% of urban housing in China had been in existence for over 30 years, and it is estimated that around 80% of properties will become old neighborhoods by around 2040, requiring maintenance and renovation. The housing pension system, as explained by a responsible official from the Ministry, is an essential approach to address people’s urgent concerns and enhance safety in existing housing, especially as the country enters an era of urban renewal. Pilot programs for the housing pension system are currently being explored in selected cities.
China already has a Special Repair Fund for Residential Properties in place, which is collected when residents purchase homes and is used to repair, update, and renovate shared areas and facilities after the warranty period expires. Since 2004, the payment of this fund has been a prerequisite for obtaining property ownership certificates. However, real estate expert Yan Yujiang from the Shanghai-based E-House Real Estate Research Institute pointed out that the current system has encountered issues, such as the lack of standardization in collecting and managing the fund.
With the growing number of existing properties and aging housing stock, there is a need for a more comprehensive, systematic, and updated financial support system, particularly from the government, to manage and maintain these properties. The housing pension system aims to address these challenges.
The housing pension consists of two parts: a personal account and a public account. The personal account, already established through the Special Repair Fund, will be combined with the public account, which the government is tasked with setting up, according to Dong. The public account will adhere to the principle of funds sourced from properties used for properties and without additional burden on individuals or loss of personal rights, as per the official from the Ministry. Local governments may finance the public account through fiscal subsidies, land sale revenue, and other means, without requiring additional contributions from residents.
The usage of these funds will be two-fold. The personal account will continue to fund repairs and upgrades for common areas and facilities after their warranty expires, as per the current Special Repair Fund regulations. The public account, on the other hand, will focus on expenses related to property inspections and insurance.
Yan Yujiang believes that the housing pension system is a people-centric initiative and a long-term housing safety assurance project. By providing a stable source of funding for property inspections, repairs, and insurance, the system aims to overcome the shortcomings of the current Special Repair Fund, ensuring efficient and flexible support for housing safety management.
In conclusion, China’s pilot housing pension scheme reflects the government’s commitment to addressing the challenges posed by aging housing stock and ensuring the safety and livability of urban communities. As the program evolves, it will be crucial to refine the mechanisms for fund collection and usage to ensure its effectiveness and sustainability. The housing pension system holds promise for a more robust and equitable approach to managing China’s vast housing stock in the years to come.
【source】http://www.chinanews.com/cj/2024/08-27/10275092.shtml
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