Security Housing Funds Face Challenges &Nbsp; The SASAC Urged Central Enterprises To Participate In The Construction.

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Participation "

This year alone, the 10 million affordable housing will mean 1 trillion and 300 billion ~1.4 trillion investment.

In order to urge the enterprises to participate actively, the SASAC under the jurisdiction of 120 central enterprises yesterday sounded the clarion call for the central enterprises to enter the affordable housing market.

Encourage the participation of multi industry central enterprises

In the notice entitled "active participation in matters related to the development and construction of affordable housing" (hereinafter referred to as the notice), the SASAC requires central enterprises to "actively participate in the development and construction of affordable housing as an important way for enterprises to fulfill their social responsibilities, and further increase their investment in the development and construction of affordable housing".

In addition to the 16 central enterprises that take the real estate as the main business, the SASAC also mobilizes the participation of central enterprises in many industries such as exploration and construction.

The notice said that the survey and design enterprises should give full play to their advantages in personnel, qualifications and experience, and take the initiative to undertake the planning and design of affordable housing; the real estate development enterprises should seize the opportunity to introduce preferential policies in all aspects such as land supply, investment subsidies, financial discount, financing, taxes and fees, etc., and combine the affordable housing with commercial real estate development; the construction enterprises should take advantage of the advantages of the enterprises in terms of scale, quality, cost and reputation, and actively undertake the construction tasks of the affordable housing projects; and building materials enterprises should strive to guarantee the supply of building materials needed for affordable housing construction.

As for the central enterprises' own land pformation and construction, the SASAC encourages the mining enterprises to make use of the preferential policies and strive to incorporate the pformation of shanty towns into the local affordable housing construction plan.

SASAC official said that the main purpose of issuing the notice is to respond to national policies and promote central enterprises to take an active part in ensuring housing construction and guarantee the quality of affordable housing.

However, following the notice, will the SASAC take part in policies to promote the participation of central enterprises in the construction of affordable housing, and this reporter can not get further information from the SASAC.

Many central enterprises have "Nuggets" affordable housing

In fact, after the central government introduced the housing policy a few years ago, many central enterprises have deeply participated in the construction of affordable housing.

The above-mentioned SASAC people told our reporter that among the central enterprises, the current construction of more affordable housing projects is China Metallurgical Group, China Construction (601668.SH) and other enterprises.

China Metallurgical Group, which has entered the real estate industry from the metallurgical field, has been working hard for several years in the affordable housing sector.

According to the current market analysis, China Metallurgical Group has more than 50 affordable housing projects, more than 40 of which are in operation.

The forecast of capital securities is that the total scale of affordable housing construction of China Metallurgical Group is no less than 20 million square meters this year.

According to the 2010 annual report of China's construction, the total scale of the company's participation in the construction of affordable housing has reached 11 million 550 thousand square meters, accounting for 3% of the total area of the company. The construction of affordable housing projects in China has reached the stage of scale production.

Construction mode is still the main form of central enterprises participating in the development of affordable housing.

Taking China's architecture as an example, the total housing area covered by the construction mode accounts for nearly 70% of the total housing development area.

Although affordable housing is low in price and the development profit is only about 3%~5%, the advantage lies in that the construction mode is relatively simple, the management, construction and operation are not very difficult, and the capital operation process is relatively safe. The repurchase is guaranteed and is in line with the national policy. Under the condition that the real estate development land is limited, the combination of affordable housing and commercial real estate development can also make the enterprise maximize the market opportunities under the tightening policy.

Guo Du Securities believes that the gross profit margin of China Metallurgical Group's affordable housing project can reach 10%~15%, and the company can also get a better market image by building affordable housing, and develop with the help of regional pformation to the commercial housing market.

For building materials enterprises, affordable housing market is also a rare meal.

Among the central enterprises, Song Zhiping, chairman of 03323.HK, the main building material, has said that the positive impact of affordable housing construction on cement and new building materials industry is expected to be reflected in the two or three quarter of this year.

It is estimated that the cement production capacity will reach 2.5 billion tons in the end of this year or in the first half of next year, reaching 3 billion tons in the next 5 years, of which 25% of cement sales will come from the real estate market this year.