China could be set to increase the size of their housing rental sector, instead of sticking to the current policy based on sales, in an attempt to make housing far more affordable.

Residential property prices in some parts of the country have rocketed. In Beijing, for example, property asking prices were as much as 10,000 yuan (US$1,250) per sq m in July 2006. Yet Per capita gross domestic product (GDP) was only US$1,352 in China n 2005.

It is not yet clear how China will increase the number of people renting houses and apartments, but the aim is to improve access to accommodation for medium and low-income groups, according to a report in the Beijing Morning Post.