The Interior Ministry of China recently announced policies to accelerate urban renewal, sending construction shares on a sharp rise.
The government believes that bank participation in urban renewal can improve capital returns while bolstering economic development by increasing the utilization of old structures through renovation and building new capacity and usage.
Chinese Association for Real Estate Brokers President Lin Cheng-hsiung said that despite the proposed equal area conversion rates, urban renewal rates would not increase.
He said that it was more important that public authorities be involved in urban renewal plans for them to be implemented smoothly.
Photo of river in historic neighborhood of Beijing by Storm Cunningham.