Risk Assessment Research On The Private Capital Participating In The Construction And Operation Of Public Rental Housing

During the "Twelfth Five-Year" period, public rental housing construction has gradually become one of the priorities of the national social housing construction in China, local governments actively to encourage private investment in the construction of public rental housing corresponding policies. However, due to the low rate of return on investment of public rental housing, high opportunity cost, as well as risks factors on investment, the willingness and enthusiasm of private capital to enter the field of public rental housing is not high.From the point of the risk of private capital involving in the construction and operation of public rental housing, the writer has done research in the construction of public rental housing of Zhejiang Province, summarizes three modes of the participation of private capital in the construction of public rental:Selfbuilt-occupied mode, Build-transfer(BT) mode, Commodity housing built with public rental housing. On the other hand, the writer make questionnaires about the risk of private capital (taking PPP mode for example)taking part in public rental housing construction and operation, and risk willingness of the private capitaL Empirical analysis shows that the overall willingness of enterprises’direct investment in the operation of the public rental housing is low, the gap between the real rate and the required rate of return of public rental housing is the large. There is higher degree of risk in the operational stage and the financing stage,because enterprises’s willingness is low.Based on the gap betwwenthe level of the risk and willingness, the author construct a risk system model with six indicators:risk of capital and financing indicator, risk of construction and operation indicator, risk of the government maturity indicator, risk of communication and cooperation indicators, risk of macroeconomic environmental indicators, risk ofdefecton legal system indicators.Finally, the peper suggests the government should take certain incentives/constraints measures to encourage and support the participation of private capital in the construction and operation of public rental housing from the economic incentives, the power incentives, the corporate reputation mechanism and the enterprise evaluation mechanism, in order to better supervise and manage the corporate behavior and their performance.