HOUSING REFORMS IN CHINA: A PARADIGM SHIFT TO MARKET ECONOMY
The purpose of this paper is to examine the extent to which China has achieved the reform goals of marketisation and privatization of housing. The ‘low salary, low rent’ policy has resulted in severe shortage of housing supply and poorly maintained buildings. To tackle these problems, a number of reform measures are introduced to transform state provision of housing to a free market for housing. The transformation process from housing-in-kind to housing-in-cash has been gradual and slow. The paper concludes that after two decades of trial and error, housing reforms in China remain piecemeal and incomplete. No comprehensive housing reform policy has been laid down. The way forward for commodification of housing in China depends to a large extent on wage reforms, financial reforms and clarification of property rights.
Keywords: Housing reforms, housing policy, China