Beijing's first joint ownership housing scheme lottery opens

A total of 427 from more than 12,000 eligible families in Beijing were chosen Saturday in a lottery system allowing them to purchase the city's first joint ownership homes.

They will buy the apartments in Chaoyang District at 22,000 yuan (3,300 U.S. dollars) per square meter, and share the ownership at a 50-50 ratio with the Beijing municipal government.

It is Beijing's first joint ownership housing project since the idea was introduced in August to help people who would otherwise not be able to buy their own homes.

All the 427 households are either registered or work in Chaoyang District and don't own houses.

The construction guideline on joint ownership housing issued by Beijing housing commission on September 23 went into effect from Saturday.

According to the guideline, the houses to be built in the city's six central districts shall be no bigger than 90 square meters. The commission requires housing developers to consider families with two children, as well as elderly people, in housing design.

The government has made restrictions on who can buy the houses. For example, buyers and their families cannot already own homes, single people making purchases must be at least 30 years old, and a family can only apply for one such home.

Five years after purchase, owners can sell their shares based on the market price, but the government or its assigned management agencies have first-refusal to buy-back.

China has recently taken a set of measure to stabilize the housing market and curb speculation.