China's Paradoxical Reforms on Land and Real Estate Property Markets

    Research output: Contribution to journalArticle

    Abstract

    Real estate property has arguably been the most contested issue during China’s transformation towards a market economy. It touches the very heart of China’s socialist doctrine: the state/collective ownership of land. This paper analyses the evolutions of land and real estate property laws in contemporary China including their outcomes and implications for overseas investors. Real estate property fixed on land has been mostly privatised during China’s unprecedented process of urbanisation along with its market economy reforms. Driven by the dual tropes of market economy and urbanisation, China’s government has reformed laws to ‘marketise’ real estate property for investment, ownership and transaction and the reforms have differentiated implications for different social groups. There are constantly new winners and losers. The drivers of and impediments to these reforms are identified including the inherent political paradoxes embedded within them: state/collective ownership of land vs. market transaction of land use right; state ownership of land vs. private ownership of real estate property fixed on the land. The paper argues that these paradoxes are challenging China’s socialist system of public ownership and the continuing legitimacy of the Communist Party of China (CPC). Leaving them unresolved may provoke a pessimistic tenor to China’s buoyant expectations of growth in its developing market economy. However, judging from the historic tracks of China’ reforms towards a market economy and its current dilemma, China is very likely to further reform its laws on land and real estate property in a manner ‘with Chinese characteristics’.
    Original languageEnglish
    Pages (from-to)11-21
    Number of pages11
    JournalGlobal Built Environment Review
    Volume8
    Issue number3
    Publication statusPublished - 2013

    Fingerprint

    Real estate
    Property market
    China
    Market economy
    Ownership
    Paradox
    Urbanization
    Impediments
    Social groups
    Land use
    Legitimacy
    Public ownership
    Socialist system
    Private ownership
    Law reform
    State ownership
    Government
    Investors
    Communist Party

    Cite this

    @article{0aa6bcc4f00647f0ad5a56a63b4fb519,
    title = "China's Paradoxical Reforms on Land and Real Estate Property Markets",
    abstract = "Real estate property has arguably been the most contested issue during China’s transformation towards a market economy. It touches the very heart of China’s socialist doctrine: the state/collective ownership of land. This paper analyses the evolutions of land and real estate property laws in contemporary China including their outcomes and implications for overseas investors. Real estate property fixed on land has been mostly privatised during China’s unprecedented process of urbanisation along with its market economy reforms. Driven by the dual tropes of market economy and urbanisation, China’s government has reformed laws to ‘marketise’ real estate property for investment, ownership and transaction and the reforms have differentiated implications for different social groups. There are constantly new winners and losers. The drivers of and impediments to these reforms are identified including the inherent political paradoxes embedded within them: state/collective ownership of land vs. market transaction of land use right; state ownership of land vs. private ownership of real estate property fixed on the land. The paper argues that these paradoxes are challenging China’s socialist system of public ownership and the continuing legitimacy of the Communist Party of China (CPC). Leaving them unresolved may provoke a pessimistic tenor to China’s buoyant expectations of growth in its developing market economy. However, judging from the historic tracks of China’ reforms towards a market economy and its current dilemma, China is very likely to further reform its laws on land and real estate property in a manner ‘with Chinese characteristics’.",
    author = "Richard HU",
    year = "2013",
    language = "English",
    volume = "8",
    pages = "11--21",
    journal = "Global Built Environment Review",
    issn = "1474-6824",
    number = "3",

    }

    China's Paradoxical Reforms on Land and Real Estate Property Markets. / HU, Richard.

    In: Global Built Environment Review, Vol. 8, No. 3, 2013, p. 11-21.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - China's Paradoxical Reforms on Land and Real Estate Property Markets

    AU - HU, Richard

    PY - 2013

    Y1 - 2013

    N2 - Real estate property has arguably been the most contested issue during China’s transformation towards a market economy. It touches the very heart of China’s socialist doctrine: the state/collective ownership of land. This paper analyses the evolutions of land and real estate property laws in contemporary China including their outcomes and implications for overseas investors. Real estate property fixed on land has been mostly privatised during China’s unprecedented process of urbanisation along with its market economy reforms. Driven by the dual tropes of market economy and urbanisation, China’s government has reformed laws to ‘marketise’ real estate property for investment, ownership and transaction and the reforms have differentiated implications for different social groups. There are constantly new winners and losers. The drivers of and impediments to these reforms are identified including the inherent political paradoxes embedded within them: state/collective ownership of land vs. market transaction of land use right; state ownership of land vs. private ownership of real estate property fixed on the land. The paper argues that these paradoxes are challenging China’s socialist system of public ownership and the continuing legitimacy of the Communist Party of China (CPC). Leaving them unresolved may provoke a pessimistic tenor to China’s buoyant expectations of growth in its developing market economy. However, judging from the historic tracks of China’ reforms towards a market economy and its current dilemma, China is very likely to further reform its laws on land and real estate property in a manner ‘with Chinese characteristics’.

    AB - Real estate property has arguably been the most contested issue during China’s transformation towards a market economy. It touches the very heart of China’s socialist doctrine: the state/collective ownership of land. This paper analyses the evolutions of land and real estate property laws in contemporary China including their outcomes and implications for overseas investors. Real estate property fixed on land has been mostly privatised during China’s unprecedented process of urbanisation along with its market economy reforms. Driven by the dual tropes of market economy and urbanisation, China’s government has reformed laws to ‘marketise’ real estate property for investment, ownership and transaction and the reforms have differentiated implications for different social groups. There are constantly new winners and losers. The drivers of and impediments to these reforms are identified including the inherent political paradoxes embedded within them: state/collective ownership of land vs. market transaction of land use right; state ownership of land vs. private ownership of real estate property fixed on the land. The paper argues that these paradoxes are challenging China’s socialist system of public ownership and the continuing legitimacy of the Communist Party of China (CPC). Leaving them unresolved may provoke a pessimistic tenor to China’s buoyant expectations of growth in its developing market economy. However, judging from the historic tracks of China’ reforms towards a market economy and its current dilemma, China is very likely to further reform its laws on land and real estate property in a manner ‘with Chinese characteristics’.

    M3 - Article

    VL - 8

    SP - 11

    EP - 21

    JO - Global Built Environment Review

    JF - Global Built Environment Review

    SN - 1474-6824

    IS - 3

    ER -