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China's Urban Housing Reform: Price-Rent Ratio and Market Equilibrium

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  • Aimin Chen

    (Department of Economics, Indiana State University, Terre Haute, IN 47809, USA. ECCHEN@Scifac.indstate.edu)

Abstract

China's urban housing marketisation hinges on a sensible ratio of housing price to rent. This research derives a rational level for such a ratio and examines its distortions under the Chinese system. It shows that the prevailing housing price to rent ratios are significantly higher than the rational level for both subsidised and free-market housing. Unique Chinese housing market equilibria are analysed and policy recommendations on commercialising Chinese urban housing are suggested.

Suggested Citation

  • Aimin Chen, 1996. "China's Urban Housing Reform: Price-Rent Ratio and Market Equilibrium," Urban Studies, Urban Studies Journal Limited, vol. 33(7), pages 1077-1092, August.
    • Handle: RePEc:sae:urbstu:v:33:y:1996:i:7:p:1077-1092
    DOI: 10.1080/00420989650011519
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    References listed on IDEAS

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    1. Wojciech Charemza & Richard E. Quandt, 1990. "Dual Housing Markets in a Centrally Planned Economy: An Empirical Analysis," Kyklos, Wiley Blackwell, vol. 43(3), pages 411-436, January.
    2. Charemza, Wojciech W & Quandt, Richard E, 1990. "Dual Housing Markets in a Centrally Planned Economy: An Empirical Analysis," Kyklos, Wiley Blackwell, vol. 43(3), pages 411-436.
    3. McKinley, Terry & Wang, Li Na, 1992. "Housing and wealth in rural China," China Economic Review, Elsevier, vol. 3(2), pages 195-211.
    4. Alexeev, Michael V, 1988. "Market vs. Rationing: The Case of Soviet Housing," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 414-420, August.
    5. Tolley, G.S., 1991. "Urban Housing Reform in China," World Bank - Discussion Papers 123, World Bank.
    6. Buckley, Robert M, 1994. "Housing Finance in Developing Countries: The Role of Credible Contracts," Economic Development and Cultural Change, University of Chicago Press, vol. 42(2), pages 317-332, January.
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    Cited by:

    1. Fleisher, Belton M. & Yin, Yong & Hills, Stephen M., 1997. "The role of housing privatization and labor-market reform in China's dual economy," China Economic Review, Elsevier, vol. 8(1), pages 1-17.
    2. Cheng, Zhiming & King, Stephen P. & Smyth, Russell & Wang, Haining, 2016. "Housing property rights and subjective wellbeing in urban China," European Journal of Political Economy, Elsevier, vol. 45(S), pages 160-174.
    3. Li, Lixing & Wu, Xiaoyu, 2019. "Housing price and intergenerational co-residence in urban China," Journal of Housing Economics, Elsevier, vol. 45(C), pages 1-1.
    4. Yongsheng Jiang & Dong Zhao & Andrew Sanderford & Jing Du, 2018. "Effects of Bank Lending on Urban Housing Prices for Sustainable Development: A Panel Analysis of Chinese Cities," Sustainability, MDPI, vol. 10(3), pages 1-16, February.
    5. Iris Claus & Les Oxley & Jie Chen & Xuehui Han, 2014. "The Evolution Of The Housing Market And Its Socioeconomic Impacts In The Post-Reform People'S Republic Of China: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 652-670, September.
    6. Lin, Jen-Jia & Cheng, Yu-Chun, 2016. "Access to jobs and apartment rents," Journal of Transport Geography, Elsevier, vol. 55(C), pages 121-128.

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