A Study On The Public Rental Housing System Of Dalian City

Public rental housing provides low-rent and small-sized residence for people who are not eligible buyers of economically affordable housing and fail to afford commercial housing, being an effective solution to the housing problem. Therefore, as a key measure carried out by the government for the sake of the well-being of the people, promoting public rental housing is in line with the scientific outlook on development and will safeguard the basic rights of the citizens, improve people’s life, and greatly help those vulnerable groups, embodying that the government is ruled by the people, for the people, of the people.However, fund shortage undermines the development of public rental housing system. Different from economically affordable housing or capped-price housing, whose return of investment (ROI) settles once and for all as long as it is sold, public rental housing gains yields in tens of years or even hundreds of years. In those tier-one cities of China, the cycle of ROI for private capital to develop public rental housing is more than two decades. And it will take even more time in tier-two cities to get returns, which discourages private capital to invest in this area. What’s worse, some local governments are afraid of paying huge advances for building public rental housings, thus blocking the development of the public rental housing system.A government-led public rental housing system is not sustained; we have to build a market-based mechanism appealing to private capitals to develop the public rental housing system. In the advent of a market-based and government-supported housing system, security housing will bring great opportunities to property developers, that is to say, we should develop a relevant profit model as soon as possible to keep up with the changes of the market In the meantime, government administrations have to make well-established rules as fast as they can in order to motivate private funds and to give rise to a healthy and steady development of the real estate industry.In this paper, the author takes researches into the as-is and features, and issues of the public rental housing system of Dalian City, and also gives suggestions on how to improve it.