HONG KONG-China, in a somewhat altruistic usage of their autocracy, has announced it will build 10 million affordable apartments in 2011. The enormous project will cost 1.3 trillion yuan or $197 billion.
Vice Minister of Housing and Urban-Rural Development Qi Ji told the state media that both central and local governments would contribute to the project, to the tune of 500 billion yuan. Public institutions and business will provide the rest, taking advantage of a public-private partnership model that has been much-touted in the US.
The vice minister noted that local governments would contribute 10% of revenue from land sales and issuance of government bonds could fill in much of the rest. The local governments are anticipated to raise $200 billion from debt issuance in 2010.
For some size and scope, the veritable hamlet within a city--Manhattan's Stuyvesant Town/Peter Cooper Village--which spans almost 23 city blocks, is only 11,200 apartments. South Korea's Songdo International Business District clocks in at $35 billion and will eventually measure 250 buildings and was conceived roughly 10 years ago. This is also a public-private partnership, however it is intended to complete in 2014. So to recap, China is proposing to build 1,000 Stuyvesant Towns in a fraction of the time Songdo will be conceived, constructed and completed.
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