The Research Of China’s Affordable Housing Operation Mechanism

Ever since1998housing system reform, China’s real estate market has got rapiddevelopment. On one hand, the long-restrained purchasing power is quickly released.The rigid housing needs promote a high degree of prosperity in the housing market andthe rapid rise of a large number of real estate enterprises. People’s living conditionshave also been significantly improved. On the other hand, the limited supply of land andthe prominent contradiction between supply and demand lead to the surging housingprices, which discourage most buyers and bring heavy financial burden to the peoplewith a real demand. For the low-income groups, it has been a great problem to buy ahouse. Correspondingly, social security problems arise.To provide good living conditions for the low-income is one of the basic duties ofthe government, in which regard Chinese government has made sustained efforts.However, for various reasons, by far the government has not put enough money in theindemnificatory housing. The market financing ability is also insufficient. Both makethe existing supply of indemnificatory housing far from meeting its huge demand.Therefore, by analyzing the planning systems of the indemnificatory housing supply,access and exit mechanisms, and supportive systems, this paper aims to explore thecountermeasures and suggestions of developing the indemnificatory housing in China.The paper includes the following three parts:Firstly, the paper will explore the international models and the development ofindemnificatory housing in the frontier cities of China. Internationally, there is thefinancial-supporting model of the United States, the non-profit corporation-dominatedmodel of Japan and the government-dominated model of Singapore. In China, there isthe multi-level security model in Beijing, the provident fund system in Shanghai and thepublic rental model in Chongqing. Learning from the successes and failures of thesecountries and cities will contribute to the overall establishment of indemnificatoryhousing system in China.Secondly, the paper will analyze the current situation and exiting problems ofChina’s indemnificatory housing. Analysis of the situation and problems of China’seconomically affordable housing and low-rent housing is the basis of putting forwardingthe countermeasures and suggestions according with China’s national conditions.Thirdly, the paper will analyze each part of the operating mechanism of the indemnificatory housing in China. It aims to improve the indemnificatory housingsystem in China from the following six aspects: the supply mechanism, the planninglayout, the access mechanism, the exit mechanism, the capital support system and thelegal support system.