Kunming City Of Affordable Housing Reits Development

In order to effectively solve our country's long-standing housing difficulties of low-income families during the Twelfth Five-Year Plan period, a construction of indemnificatory housing project which includes36million apartments is gong to be taken from2011to2015. The government-subsidized housing project is always facing the shortage of funds and dilemmas of financing due to its drawbacks of large investment amount, low profits and capital precipitation cycle, especially when its scale is relatively huge. Consequently, financing in various ways is becoming the most important task for the successful construction. This article is aimed to solve the financing problems existed in Kunming's affordable housing construction by exploring the Real Estate Investment Trust (REITs) and making a market operation among government, real estate companies and developers.Firstly, this article provides an overview about the Real Estate Investment Trust (REITs) and analyzes the characteristics, classification and operation mode of REITs. Secondly, Introducing the present situation of the affordable housing construction and financing difficulties of Kunming, this paper demonstrates the case of government-subsidized housing construction in developed country, and abstracts some useful experience or inspiration. We reckon that REITs is a suitable way to develop the financing of Kunming's indemnificatory housing construction through combining the experiences and realities, while the specific financing pattern and developing path and the yield are analyzed comprehensively. In addition, the limited factors about REITs in this study have been researched, and some coping strategies is given at last.