HOME PURCHASE IN CHINA - A case study of Guangzhou from in-kind allocation to cash subsidy

Eddie Chi-Man Hui

Journal of the Asia Pacific Economy, 2001, vol. 6, issue 1, 47-60

Abstract: In China, promotion of home purchase has since 1979 been one of the major housing policies. Guangzhou is in the vanguard of housing reform. In 1997 the Guangzhou government announced an innovative housing initiative - the Housing Allowance Scheme (HAS). To enhance home ownership, this scheme endeavours to eliminate completely the existing welfare 'in-kind' allocation system. Civil servants appointed after 30 September 1997 no longer receive state housing. Instead they are provided monthly housing allowances 'in cash'. This paper examines the feasibility of the HAS against its objective of 'home purchase'. It reviews welfare housing development in Guangzhou in the context of policy development, housing need, and housing investment and provision. It then gives a systematic account of the key features of the HAS in Guangzhou and discusses its possible shortcomings as well as offering recommendations. The concluding section gives further suggestions for policy change.

Date: 2001
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DOI: 10.1080/13547860020024521

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