Almost 1,000 low-income families in Fangshan district began choosing their "capped-price" homes on Monday as part of Beijing's long-running housing project.

The selection process will last until March 1, while all 961 families are expected to have moved in by the end of 2012, according to the district affordable housing office.

Most of the 984 apartments, which are located in the center of Changyang town, are 87-square-meters and have two bedrooms, said office director Wang Weitao. They are sold at a fixed price of 5,600 yuan per square meter, almost one third of the market value for the area.

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Families can sign purchasing contacts with the developer when they select their favorite flat, said Wang. "The selection process is fair and transparent," he insisted. "Applications are selected through a random, computer-based lottery system. All the 961 families will get their homes."

The project, which is seen as an update to affordable housing by some real estate insiders, is only available to families of three people or less with permanent residency in the capital. They must have an annual income of 88,000 yuan or less and total assets of no more than 570,000 yuan.

Families of four or more should earn a maximum annual income of 116,000 yuan and have total assets less than 760,000 yuan.

Residents wanting to sell the apartments in the future will be required to accept offers that meet the capped value.

"I'm buying this home for my 26-year-old son because he's getting married," said a relieved Liu Chunxiang, 50, as she picked out an apartment. "I'm so glad the biggest concern in my life has been taken off my shoulders."

Beijing plans to construct 200,000 homes for low-income families in five years, including both "capped-price" housing and affordable housing, according to Beijing Municipal Commission of Housing and Rural-Urban Development.