Housing Reform and Home Ownership Behaviour in China: A Case Study in Guangzhou

Abstract

Abstract The recent housing reform in China signifies the paradigm shift from central planning to market mechanisms in the allocation of housing resources. This paper aims to identify major determinants, household demographics and work unit characteristics in the tenure choice decision so that policy implications can be drawn. The case study on Guangzhou provides insights into Mainland household decisions on choosing the utility-maximising tenure mode. Empirical results indicate that the market allocation mechanism introduced by the housing reforms has not yet replaced the entrenched influence from work units on home ownership behaviour. The finding on unsatisfied home owners is rather unexpected. Keywords: Housing ReformTenure ChoiceChinaHome Ownership