The Mainland government is considering Hong Kong’s public housing system to meet the surging demands of lower- and middle-classes for affordable housing, the Beijing Business Journal reported. An official with the Ministry of Construction recently said that the government is currently planning the development of a economy housing system that is modeled upon Hong Kong’s mature system of public housing in order to provide property security to Chinese nationals. Ciao Nianguo, director of investment department f DTZ property consultancy, said that Hong Kong’s public housing system involves the HKSAR government selling the land to developers who are then responsible for constructing the properties, that upon the completion of the project, are partially purchased by the government. The government would lease this housing to eligible citizens. After a certain period of time, the government would sell this housing to the residents at a discounted price.   “Although the structural reform of Mainland’s housing system differs from Hong Kong’s, the fundamental is the same—to protect those of low income to enjoy a certain level of housing security with government-controlled property prices,” added Ciao.   The new regulations on transfer of land ownership announced by the Ministry of Land and Resources established the foundation for a housing security system similar to that of Hong Kong's.   The Ministry of Construction said that the future housing security system would target low-income households. The government would terminate the lease once the household’s income exceeds the limit. Cheaper housing would target at those along the poverty line.   China has been striving to establish a well-rounded housing system since 1998. However, the reforms have failed to bring about effective results.   Chen Xingdong, a senior economist with BNP Paribas, said that the real estate reforms so far still cannot satisfy the surging demands for economy housing. It remains difficult for people of low- or middle-income to pay a large deposit in order to purchase property. Many provinces and cities are in urgent need of such a housing system.   The Ministry of Construction added that the government would work on financing channels and incentives to real estate developers and investors in order to encourage more active involvement with the real estate leasing market. A central management and monitoring body for property leasing also needs to be established. In doing so, an economy housing system modeled after that of Hong Kong would be possible.