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Strategic land allocation in China’s urban renewal: the role of non-market mechanisms

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  • Zhengbin Liang

    (University of Southampton)

Abstract

Despite the 2004 land marketization reform, nearly 60% of market housing land transactions in China still involve non-market mechanisms. This study discusses three primary reasons. First, non-market allocation significantly reduces land costs for market housing, attracting more stakeholders to participate in urban renewal projects. Second, non-market allocation allows local governments to select experienced and capable developers, ensuring the success of urban renewal projects. Third, non-market allocation facilitates better negotiation of compensation and resettlement for relocated residents, reducing social tensions and maintaining stability. Non-market allocation emerges as a strategic tool for managing the complexities and risks of urban renewal in China.

Suggested Citation

  • Zhengbin Liang, 2025. "Strategic land allocation in China’s urban renewal: the role of non-market mechanisms," SN Business & Economics, Springer, vol. 5(5), pages 1-16, May.
    • Handle: RePEc:spr:snbeco:v:5:y:2025:i:5:d:10.1007_s43546-025-00819-6
    DOI: 10.1007/s43546-025-00819-6
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    References listed on IDEAS

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