The Process of Commercialisation of Urban Housing in China

TLDR

In China, the role of the state in housing has sparked debate, with many decision‑makers now favoring market‑driven supply and a series of reforms since 1979 aimed at commercialising the public‑sector‑dominated system. This paper reviews housing reforms and systematically documents the key features of the commercialisation process. It examines efforts to privatise public‑sector urban housing, analysing the system’s characteristics, policy evolution, legislation, and current reform practice.

Abstract

The role of the state in housing has been the subject of controversial debate recently in China. More and more decision-makers consider that the supply of housing should be left to market forces of demand and supply. Various new policies have been introduced from as early as 1979, designed to commercialise and reform the public-sector-dominated housing system. This paper provides a review of housing reforms and a systematic account of the key features of the commercialisation process. It focuses principally on the attempts to privatise public-sector housing in urban areas in the context of the major characteristics and problems of the urban housing system, the development of reform policies and legislation and current reform practice.