Housing Reform and Housing Affordability in China: A Case Study of Shanghai Jie chen PhD(Uppsala), Associate Professor School of Management, Fudan University - Institution for Housing and Urban Research Uppsala University, Sweden
Housing Reform and Housing Affordability in China: A Case Study of Shanghai Jie Chen PhD (Uppsala), Associate Professor School of Management, Fudan University & Institution for Housing and Urban Research, Uppsala University, Sweden
The Contents Housing reform in China 1978-2006: the transition path Housing market development in Shanghai 1993-2006 Assessing the housing affordability situation in Shanghai 1995-2006 China Urban Land and Housing in 2 the 21st Century, HK Dec 2007
China Urban Land and Housing in the 21st Century, HK Dec.2007 2 The Contents ◆Housing reform in China 1978-2006: the transition path ◆Housing market development in Shanghai 1993-2006 ◆Assessing the housing affordability situation in Shanghai 1995-2006
Contributions Background materials A Systemic analysis of housing affordability in urban China o Methodology contribution: New approaches of measuring housing affordability >dynamic price-to-income ratio dynamic residual income approach China Urban Land and Housing in 3 the 21st Century, HK Dec 2007
China Urban Land and Housing in the 21st Century, HK Dec.2007 3 Contributions ◆Background materials ◆A systemic analysis of housing affordability in urban China ◆Methodology contribution: New approaches of measuring housing affordability: ➢dynamic price-to-income ratio; ➢dynamic residual income approach
The rise of the question The issue of housing affordability in China must be understood in the historical background o Before the 1978 reform, residential housing was a welfare good that distributed by the authority, no problem of affording, but just chance to be allocated and time of waiting o Only after the housing becomes a commodity good the housing affordability issue arises The transformation of housing finance system has played a critical role in this process China Urban Land and Housing in 4 the 21st Century, HK Dec 2007
China Urban Land and Housing in the 21st Century, HK Dec.2007 4 The rise of the question ◆The issue of housing affordability in China must be understood in the historical background ◆Before the 1978 reform, residential housing was a welfare good that distributed by the authority, no problem of affording, but just chance to be allocated and time of waiting ◆Only after the housing becomes a commodity good, the housing affordability issue arises. ◆The transformation of housing finance system has played a critical role in this process
The welfare housing allocation and old housing finance system A Under the welfare housing system, government produced and allocated housings e Virtually all housing investments were solely financed by the state budgetary funding The single-channel state budgetary funding housing finance system could not be sustained Due to the continued financial deficit investment on urban residentia a housing was consistently low Housing storage was extremely serious in big cities like Shanghai China Urban Land and Housing in 5 the 21st Century, HK Dec 2007
China Urban Land and Housing in the 21st Century, HK Dec.2007 5 The welfare housing allocation and old housing finance system ◆Under the welfare housing system, government produced and allocated housings. ◆Virtually all housing investments were solely financed by the state budgetary funding. ◆The single-channel state budgetary funding housing finance system could not be sustained. ◆Due to the continued financial deficit, investment on urban residential housing was consistently low. ◆Housing storage was extremely serious in big cities like Shanghai