Analysis Of Public Housing Policy In China

Residential mobility before the mid-80s was low and has little impact on urban and social spatial structure, since housing shortage and housing allocation system has been based on construction and allocation of housing by work units.The living standard of many Chinese have improved due to the changes that housing system has undergone when open door policy was implemented. Housing system was raised from an initial stage in form of rent subsidies to housing sales when Chinese government decided to adopt market orientation system to house its population. People of different income levels emerged also and the government needs to change its policy in accordance with the demands of the population.For many years ago China adopted welfare housing strategy, where the government is the sole provider of housing to it employees at a very low cost, therefore workers only anxiety is to work very hard in the state companies to push up the production and raise the GDP of the country. Recently, housing in China has become one of the hottest topics among Chinese Central Government, Local Government, Medias, researchers, working classes, graduate students, parents, married couples and unmarried, just to mention few, and they never stop finding way out to guarantee social security. Residential and commercial housing, low profit housing, affordable housing policies were carried out and been implemented progressively. Surprisingly, the incomes are not the same at each level of every household, some are rich and others are poor. The gap between the rich and the poor is considerably large and is still increasing; many people with low income could not afford their own houses since the minimum down-payment and the entry requirement of real estate market are both increasingly high; the affordable housing has become unaffordable under such a circumstances, though high incomes people were directed to the market to afford their housing and low incomes were subsidized to afford their housing as well. This policy marginalized third group families which are moderate or sandwich class families. As a matter of fact, new policies were implemented to cover these groups.China is a developing country with the largest population in the world, in order to solve housing problem, Chinese government implemented public housing policies with the connotation "public housing system with Chinese Style". This thesis provides an analysis of public housing policy in china and stresses on the applicability of this policy in Wuhan city, more particularly we have a deep insight into Hongshan public housing model where the monetary system is adapted to the needs of the neediest families. The core content is the housing security system that the local government of Wuhan city has been implemented to review housing condition of Wuhan people. As one big problem in housing field in China is the availability of data, we adopt qualitative approach to analyze public housing policies that have been already implemented in coastal cities. Out of analysis, we found that there is no effective application of policies that the central government issues, there is lack of effective supervision; the security system is also inaccurate and too much asymmetric information between applicants and the housing authorities. We conclude that public housing policy in China should be based on relevant data for analysis and scientific methodology approach should be taken into account; an effective applicability of Hongshan public housing policies by Chinese housing authorities is an important measurement to be implemented in other cities because of it monetary rent policy.