Efficiency Research Of Small Property Housing In Resource Allocation Process

Ministry of Land and Resources and Ministry of Housing jointly issued a notice in March2014, required full stop to small property housing. The small property housing, total construction area of which exceeded760million square meters, has once again become the focus of attention. With the pace of urbanization in China, urban housing prices continue to rise, on the other hand, farmers’income is slowing down, and have sufficient land, small property housing of low price then emerged at the historic moment. However, the small property housing which build on the rural collective land does not comply with the provisions of the existing laws in China, issues of small property housing involved multi-stakeholder also become more complex.At the reality that small property housing is widespread and growing, we should not only stay in looking at the perspective of the existing legal provisions. As the land system generates the differences of price, small property housing and general commercial housing meet the different needs of people, and people are more inclined to buy low-priced small property housing, the so-called "big" and "small" property is due to the problem of land ownership. Therefore, commercial housing and the small property housing show the different prices in the market, we try to through this phenomenon to research efficiency of small property housing in resource allocation process.Behind the different prices are different housing costs, If we take the land as one of resources of the construction of real estate, and take the manpower, materials, time, etc. as another resource. We assume that small property housing and general commercial housing deploy the same efficiency on manpower, materials, time and other resources, then the difference between small property housing and general commercial housing is on the allocative efficiency of land resources. Thus this article from another perspective, division theory of new classical economics, use the inframarginal analysis to compare allocation efficiency of land resources between small property housing and general commercial housing. First, through the establishment of three policy-makers inframarginal model to prove that the production efficiency of complete division of labor is higher than that of incomplete division of labor; secondly, from their way of land use in development process. we can prove that the way of land use of small property housing belongs to complete division of labor, and the way of land use of general commercial housing belongs to incomplete division of labor; Finally, we can come to the conclusion based on above two points:land use efficiency of small property housing is higher than that of general commercial housing.Then, through actual research on the status of small property in Chengdu, we find that the price of small property housing is30%-50%of the price of general commercial housing in the same neighborhood in Chengdu. Thus, building behavior of small property housing make efficiency of land resource allocation improved, performance in the market is the price of small property housing far below general commercial housing at the same location(regardless the externality and other issues caused by small property housing, only from the view of resource allocation). Therefore, it is very important to establish an unified construction land market between urban and rural, and a reasonable circulation system of rural land, improve the circulation system of collective land, let the market determine the allocation of resources.