In response to the current decline in housing sales, Zhengzhou, capital of central China's Henan Province, issued 17 measures to boost the local property market in late October. The local government announced that it would purchase unsold apartments and then give them to low-income families who are eligible for public housing.

The total floor space of unsold apartments in Zhengzhou had reached an all-time high of 6.4 million square meters by the end of September. It was predicted that if the local housing market remained as lackluster as it was in the first months of this year, the existing houses would not sell out in a year.

Zhengzhou's plan caused a fierce debate among residents.

Some say, in accordance with market rules, property developers only have one choice in the current sagging situation-to discount their houses. But the government's intervention is very likely to prevent the price cuts from happening to benefit the many potential homebuyers.

As for people's doubts, Zhengzhou's housing officials explain that while the government is trying its best to provide affordable housing to low-income families, shrinking land availability in downtown has forced the government to build public housing projects in outlying suburbs. In order to help these needy families live in more accessible areas, the government decided to buy houses in more convenient locations from real estate developers.

Some people point out, whomever the government means to help, this plan needs approval from lawmakers and should be included in the local budget. Failing this, the plan is illegal, because the government is using taxpayers' money to purchase the houses. The good intention of spending the money on low-income families will not necessarily justify the move.

Public good

Pan Hongqi (Yangcheng Evening News): In a market economy, the government provides public services in two ways: First, it sets up special agencies to offer relatively cheap services to the public. Second, the government buys products and services from non-state-owned businesses and sells them to the public at a discounted price.