Core Points - Shenzhen's housing authority has released two drafts for public consultation regarding the management of affordable housing, clarifying the framework for the new "purchase-based affordable housing" policy, which will be permanently non-transferable to commercial properties [1] - The new affordable housing system in Shenzhen will consist of three categories: public rental housing for residents in need, rental housing for new citizens and talents, and purchase-based affordable housing aimed at low-income workers, which is the only category that can be sold [1][2] - The existing market includes three types of saleable policy housing: saleable affordable housing, saleable talent housing, and shared ownership housing, with the latter being a relatively new product with limited availability [1][2] Summary by Category Affordable Housing Policy - The purchase-based affordable housing (referred to as "配保房") will have strict management and will not be convertible to commercial properties, thus enhancing its protective attributes [1][2] - The policy aims to provide housing options for middle and low-income earners, with units sized below 70 square meters and strict regulations against changing their status [2] Market Dynamics - The rental return rates are a key indicator for assessing housing prices, and the introduction of purchase-based affordable housing is expected to lower overall housing costs and improve rental yields [3] - The existing affordable housing options, such as saleable affordable housing and talent housing, are still available in significant numbers, but they can eventually convert to commercial properties, which may limit the stock of affordable housing [3]

Core Viewpoint - The newly released management measures for the allocation-type affordable housing in Shenzhen signify a significant step towards aligning the city's housing security system with national standards, aiming to better serve the housing needs of low-income groups [1][2]. Group 1: Policy and Management - The Shenzhen Municipal Housing and Construction Bureau has drafted the "Shenzhen Allocation-Type Affordable Housing Management Measures (Draft for Comments)," which outlines the criteria for purchasing such housing, including being a Shenzhen resident, not owning property in Shenzhen, and having paid social insurance for a specified duration [1][3]. - The allocation-type affordable housing will be sold as existing properties and will be subject to strict management, prohibiting any conversion to commercial housing [4]. Group 2: Pricing and Market Impact - The pricing of allocation-type affordable housing will be determined based on land costs, construction costs, reasonable profits, and relevant taxes, while considering economic conditions and the payment capabilities of low-income groups [4][5]. - The new management measures are expected to create a clear distinction between affordable housing and commercial housing, potentially leading to a healthier real estate market focused on product quality rather than just meeting basic demand [7]. Group 3: Construction and Supply - Shenzhen plans to construct 145,000 housing units in 2024, including 100,000 units of affordable housing, with 15,000 units specifically designated as allocation-type affordable housing [6]. - The distribution of these affordable housing units will be balanced across key districts in Shenzhen, promoting a "work-live balance" for applicants [6].