Housing Reform and China’s Real Estate Industry (eBook)

Series Preface 6
Acknowledgments 8
Introduction 10
The Macroeconomic System and the Real Estate Industry 10
Housing Market 11
Real Estate Finance 12
Public Policies on Housing 12
Housing System 13
Contents 14
Chapter 1: Real Estate Industry in the National Economy: History, Present and Future 15
1.1 Review 15
1.2 Is Housing Investment in China the Main Driver of Economic Growth? 17
1.2.1 Review of Literature 19
1.2.2 Data 22
1.2.3 Metering Methods and Empirical Results 25
1.2.4 Robustness Test 27
1.2.5 Conclusion 33
1.3 Does China´s Real Estate Industry Have a High Level of Relevancy and Strong Driving Force? 34
1.3.1 Real Estate and Real Estate Industry 36
1.3.2 Analysis of Industrial Relevancy 40
1.3.3 Conclusion 44
1.4 Policy Forecast 45
References 47
Chapter 2: History and Outlook of China´s Housing Market 50
2.1 A Brief History of China´s Housing Market 50
2.1.1 Stage of Slow Release of Potential Demand Driven by the Housing Reform (1978-2001) 50
2.1.2 Stage of Short Supply and Soaring Housing Price Driven by Rapid Urbanization and Industrialization (2002-2013) 54
2.1.3 Stage When Structural Surplus and Shortage Co-exist (2014-present) 59
2.2 Problems and Challenges: Weaker Driving Forces and Prominent Structural Surplus 62
2.3 Outlook on Future Trend 63
2.3.1 Residents´ Demand for ``Housing´´ Is Replaced by the Demand for ``Good Housing´´, and Housing Price Won´t Experience Gen... 63
2.3.2 Short Supply Is Replaced by Structural Surplus and Structural Adjustment of Housing Price Is Unavoidable 64
Chapter 3: Real Estate Finance in China: Evolution and Prospects 66
3.1 Institutions 66
3.1.1 Origin and Evolution 67
3.1.2 Main Problems 71
3.1.3 Outlook 72
3.2 Market 73
3.2.1 History 73
3.2.2 Main Problems 76
3.2.3 Outlook 77
3.3 Policies 77
3.3.1 Evolution History 78
3.3.1.1 No.18 Document in 2003-2008: Commercial Housing Financing Demand Was Regulated 79
3.3.2 Main Problems 81
3.3.3 Outlook 82
References 82
Chapter 4: Housing Security in China: History and Future Trend 83
4.1 Evolution of Housing Security System in China 83
4.1.1 The First Period (1949-1978): Welfare Housing Was Distributed at Low Rent 84
4.1.2 The Second Period (1979-1997): Market-Oriented Institutional Reform 86
4.1.2.1 The Period of Overall Auxiliary Reform: Subsidized Rent Increase and Housing Provident Fund Pushed Housing Commerciali... 89
4.1.3 The Third Period (1998-2007): The System of Monetary Housing Distribution 91
4.1.4 The Fourth Period (2008-Present): Establishment of a Housing Supply System with Equal Stress on Security and Commercial ... 93
4.2 Problems 93
4.2.1 First, Unitary Security Model and Household Registration Discrimination 94
4.2.2 Second, The Housing Security System Isn´t Systemic Enough and Has Major Loopholes 94
4.2.3 Third, The Generally High Rent for Public Rental Housing Easily Leads to Effects That Cannot Meet Expectations 95
4.2.4 Fourth, Uneven Coverage of Low-Income Housing in Different Regions Leads to Unfair Income Redistribution 95
4.2.5 Fifth, Low-Income Housing Is Concentrated and Mostly in Suburbs 96
4.2.6 Sixth, Low-Income Housing Is Under Heavy Capital Pressure 96
4.2.7 Seventh, Massive Construction Has Quality Hazards 97
4.2.8 Eighth, Some Low-Income Housing Gets Cold Shoulder and Fair Distribution Faces Challenge 97
4.2.9 Ninth, Low-Rent, Low-Quality Low-Income Housing Is in Short Supply and Rental Low-Income Housing Is of a Small Proportion 98
4.2.10 Tenth, Housing Statistics and Long-Term Housing Security Plan for a New Type of Urbanization Are Absent 98
4.2.11 Eleventh, New Ghettos and Community Management Problems May Appear 99
4.3 Future Trend 99
References 102
Chapter 5: Urban and Rural Housing Systems in China: Evolution and Future Prospects 103
5.1 History 103
5.1.1 History of Rural Housing System in China 103
5.1.2 Old Urban Housing System in China 104
5.1.3 Reform of Urban Housing System in China 104
5.2 Problems 105
5.2.1 Urban and Rural Housing Markets Are Separate 106
5.2.2 Urban and Rural Housing Supply Systems Are Different and Not Well Developed 106
5.2.3 Basic Urban and Rural Housing Systems Are Different and Not Well Developed 106
5.2.4 Housing Auxiliary Systems in Urban and Rural Areas Are Different and Separate 107
5.3 Current Situation and Trend of Housing for Urban and Rural Residents in China 108
5.3.1 Current Housing Status for Urban and Rural Residents in China 108
5.3.2 Basic Housing Status for Rural Residents in China 108
5.3.3 Basic Housing Status for Urban Residents in China 110
5.3.4 Future Trend of Urban and Rural Housing in China 110
5.4 Reform and Prospects 113
5.4.1 Establishing a Urban-Rural Integrated Housing System 113
5.4.2 Establishing Urban-Rural Integrated Housing Supply System 113
5.4.3 Establishing a Urban-Rural Integrated Basic Housing System 114
5.4.4 Establishing Urban-Rural Integrated Auxiliary Housing Systems 115
References 116
Chapter 6: Urban and Rural Land Tenure Systems in China: History and Future 117
6.1 History Land Tenure System 117
6.1.1 Evolution of China´s Basic Urban and Rural Land Tenure Systems from the Founding of PRC to the Reform 117
6.1.1.1 Evolution of Rural Land Tenure System 117
6.1.1.2 Evolution of Urban Land Tenure System 118
6.1.2 Characteristics and Problems of China´s Basic Urban and Rural Land Tenure Systems from the Founding of the PRC to the Re... 118
6.1.2.1 Urban and Rural Land Tenure Systems 118
6.1.2.2 Urban Land Tenure System 119
6.1.2.3 Rural Land Tenure System 119
6.1.3 Reform and Evolution of China´s Urban and Rural Land Tenure Systems Since Reform 120
6.1.3.1 Reform of Rural Land Tenure System 120
6.1.3.2 Paid Use of Urban Land 120
6.2 New Characteristics Land Tenure System Since Reform and Opening Up 121
6.2.1 Characteristics of Urban Land Tenure System Including Housing Land Tenure System 121
6.2.2 Characteristics of Urban Housing Land Tenure System 122
6.2.3 Characteristics of Rural Farmland Tenure System 122
6.2.4 Characteristics of Rural Homestead System 123
6.3 Problems Land Tenure System Since Reform and Opening Up 124
6.3.1 Duality of Urban and Rural Land Tenure Systems 124
6.3.2 Absence and Ambiguity of Basic Systems 124
6.3.3 Monopoly in Land Operation 125
6.3.4 Unsound Management System 125
6.4 Deepening the Reform Land Tenure System and Future Prospects 126
6.4.1 Establishing an Urban-Rural Integrated Land Tenure System 126
6.4.2 Establishing a Clear Basic System 127
6.4.3 Establishing a Market-Based Land Operation Mechanism 127
6.4.4 Establishing a Smooth Management System 128
Chapter 7: Land and Property Taxation and Fiscal Reform and Land Market Control 129
7.1 Evolution of Land Management System 129
7.1.1 Rural Land Tenure System 130
7.1.2 Urban Land and Housing Property System 134
7.2 Functions and Evolution of Land Fiscal and Tax Systems 138
7.2.1 Basic Structure of Land Tax System 138
7.2.2 Development History of Land Tax System 145
7.3 China´s Unique Land Finance and Its Risks 149
7.3.1 Meaning of Land Finance 149
7.3.2 Risks of Land Finance 150
7.4 Main Problems in Current Land Management System 155
7.4.1 Division of Government Authority Over Land-Related Matters and Responsibility for Land Expenditure Is Unclear 157
7.4.2 Systematic Structure of Government Land Income Arrangement Is Irrational 159
7.4.3 Government Budgetary Management of Land-Related Income and Expenditure Is Not Standardized 160
7.4.4 The Tax System´s Adjusting Function Is Seriously Restricted 160
7.5 Outlook on the Reform of China´s Land Management System 162
7.5.1 Establish a Unified Land Factor Market for Urban and Rural Areas 163
7.5.2 Improve the Land Tax System to Meet the Requirements of Modern State Governance 167
7.5.3 Open Sources of Local Fiscal Revenue Focused on Land Tax 170