Strategic Options for Urbanization in the People’s Republic of China: Key Findings by Asian Development Bank

Author:Asian Development Bank [Bank, Asian Development]
Language: eng
Format: epub
Tags: Social Policy, Public Policy, City Planning & Urban Development, Political Science
ISBN: 9789292542498
Google: ehk_CQAAQBAJ
Publisher: Asian Development Bank
Published: 2013-09-01T14:07:40+00:00

B. Urban Land and Housing Markets

A number of specific measures are proposed for increasing availability of affordable housing. Improving the performance of land and housing markets can lead to better housing outcomes for urban residents, and support stable development of urban economies. As the supply side of the housing market is currently constrained, one priority is to open up land and housing markets by allowing a broader range of participants in economic activities that expand the supply of serviced land, as well as housing for sale or for rent. Thus, holders of collective land rights in urban areas should be allowed to develop real estate on their properties.

First, the government should recognize existing rental housing developed on collective land. Second, collective landowners should be given the right to develop additional rental housing on their properties, particularly since such housing is likely to help meet the housing needs of migrant workers and low-income families. In some cases, creation of new collectively owned urban land that could be made available for new construction can be tied to conversion of collectively owned construction land into agricultural land in rural areas, as is currently the case in the Chongqing pilot project.

Third, holders of collective land-use rights in urban areas should be allowed to convert their collective land to state land for purposes of developing it. Equitable mechanisms should be developed to allow collectives to plan and execute such a conversion, with due consideration being given to the rights of individual members of the collective. Farmers owning collective land in urban areas should be permitted to enter into partnerships with real estate developers for the purpose of formulating and implementing such development projects.

In the future, local governments should assume the role of “wholesaler” in the urban land market. In keeping with local development plans, the municipality should sell lease rights to developers of large parcels of land. These developers should then in turn subdivide these large parcels and sell land rights to the subdivided parcels to smaller developers, businesses, households, and other entities. This would increase the number and type of suppliers of land, and the amount of land available for meeting demand. This shift would put municipal land departments into a more strategic land management role, while at the same time delegating development rights and responsibilities to a broader range of actors. The resulting competition between land retailers would improve the level of efficiency with which the land market operates.

Similarly, a broader range of housing producers should be allowed to enter local housing markets. New regulations should allow non-profit agencies to develop, and then to sell or lease housing units to low-income households. Further, farmers should be allowed to form associations that develop and market housing units constructed on lands owned collectively by them.

The government should adopt a multipronged approach to increasing access to social housing by low-income families. In addition to the current policy of direct housing construction, local governments should have a broad range of policy measures relating to housing at their disposal.

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