China to build 10 million low-cost houses this year

Chinese Deputy Housing Minister said on Wednesday the government will shell out $200 billion this year to build 10 million low-cost houses.

Soaring home prices in China have made it extremely difficult for millions of Chinese across cities to afford their family homes. The government has taken drastic steps in recent months to rein in home prices. The measures include raising the minimum down payment for second home purchases and raising interest rates.

The government has come hard on speculators who it says are driving home prices. One of the key points we are trying to control, is to postpone purchases by those consumers who don't need to settle down and buy houses urgently, Deputy Housing Minister Qi Ji said.

The plan announced by China is part of a plan to build 36 million low-cost houses in five years. In January, house prices rose in 68 out of 70 cities that are on the government's watch list.