(Yicai Global) July 13 -- China's housing ministry has emphasized that monetized resettlement programs in the country's shantytowns should be carried out according to varying local conditions.

Authorities should adjust compensation for relocations in areas lacking commercial housing stock or with mounting housing price pressure, the housing ministry said in a press conference to comment on progress made in the sector. Local governments should step up resettlements in areas with an abundance of commercial housing available on the market.

Some 3.6 million shantytown renovations were undertaken in the first half of this year, accounting for close to two-thirds of the global total. The housing ministry has called on authorities to control renovation costs and prohibit illegal spending while stepping up the construction of supporting infrastructure for such initiatives.

Shantytown renovations are comprised of housing and monetized resettlements in monetized resettlements, the government will provide subsidies for residents to purchase commercial houses, or directly purchase commercial houses for them. Monetized resettlement can directly boost real estate sales, reduce stock, raise housing prices, and indirectly promote real estate investments. For housing resettlements, shanty houses are exchanged for newly built houses, which can directly fuel real estate investments, but as it does contribute to official real estate sales data, it does not directly boost sales.

Editor: William Clegg