Housing issue in China: problems and solutions

The state of residential construction in the PRC is analysed in the article. The author notes the important role of this sector in achieving record GDP growth rates and raising the living standards of the population. The course and directions of the housing reform, as well as the capacity and prospects of the real estate market are examined. The 1988 reforms fostered the privatization of housing, and much of the stock of rental housing was sold to employees of state-owned enterprises at low prices. The next stage of reform between 1993 and 1997 focused on the restructuring of housing construction, and on finance, management, and distribution systems. The 1998 reforms put an end to enterprise-supplied housing and moved to comprehensive market-based housing provision. As a result, a vigorous urban housing market developed. The housing reform has dramatically increased the floor area of residential construction and eased the chronic problem of overcrowding and poor living conditions of many urban residents. However, the achievements of the housing reform have been accompanied by the problems of inequality among income groups and regions in housing consumption, wealth, and affordability. Therefore the author’s attention is focused on some serious social and economic problems of the real estate market in China, including speculative housing demand, rapid rise in housing prices, extremely low level of housing affordability, huge reserves of unsold residential space, etc. The author argues that under the current conditions dynamism of the housing construction in China is posing many policy challenges that may threaten the sustainability of economic growth and the stability of the society. Possible solutions to these issues are also considered.

Keywords

China, residential construction, reform, real estate market, housing affordability

Publication date

21.03.2019

Number of characters

26151

Cite

GOST	Novoselova L. Housing issue in China: problems and solutions // Asia and Africa Today – 2019. – Issue 1 C. 46-53 [Electronic resource]. URL: https://asaf-today.ru/S032150750003343-9-1 (circulation date: 18.07.2024). DOI: 10.31857/S032150750003343-9
MLA	Novoselova, Lyubov V "Housing issue in China: problems and solutions." Asia and Africa Today 1 (2019):46-53. DOI: 10.31857/S032150750003343-9
APA	Novoselova L. (2019). Housing issue in China: problems and solutions. Asia and Africa Today (1), pp.46-53 DOI: 10.31857/S032150750003343-9

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