Shenzhen bared its plans to apply the Singapore housing policy and ditch the Hong Kong model that they are currently following. The city believes that the high cost of living is driving the skilled worker away so, in order to keep them and attract more people to come, it is planning to offer one million home units at a lower price - as much as half of the present market rate.

China's Shenzhen is one of the most expensive cities in the country so people are hesitant to live in the area. Besides, even if they would like to, they could not afford the rates so people are either moving or choosing to live in places that are are more affordable.

Now, Shenzhen wants to make the city budget-friendly and make the homes easily available for the public and by going with Singapore's policy when it comes to real property and housing, the city is expecting to attract more residents and homeowners. According to the South China Morning Post, China is discarding the Hong Kong scheme that it had followed for over two decades already and ready to roll out new private home ownership reforms.

"Shenzhen would like to be a pioneer seeking a scheme more like Singapore, separating more affordable homes to average individuals seeking a place to live," Li Yujia, senior economist at the Real Estate Assessment and Development Center, said.

"Currently we are still using a Hong Kong model, where most homes are built and sold as commercial products in the private market and only a small portion of cheap rental flats are designed for the poorest."

Based on the plan, Shenzhen will open one million government-subsidized homes. These properties are going to be divided into three classes that include: public rental apartments leasing for 30 percent of market rent, budget homes at half of the market price and the rest are homes at 60 percent of the market price.

Moreover, the move to use Singapore's policy on public housing is being carried out in line with Shenzhen's dedication in fulfilling the promise that it declared in June 2018.

The vow is about the availability of 1.7 million homes by the year 2035, where 60 percent would be subsidized by the government.

Commenting on how high that prices of homes have become in China's Silicon Valley, Fion He, chief analyst at Midland Holdings China, said, "Shenzhen's home price has soared too high as more are using homes as a tool for asset gains, and the current average price now is far beyond average affordability."

With that said, Shenzhen is now doing its best to make homes more affordable. The new housing reform is expected to solve the high prices in the coming years.