GOVERNANCE AND THE HOUSING QUESTION IN A TRANSITIONAL ECONOMY, THE POLITICAL-ECONOMY OF HOUSING POLICY IN CHINA RECONSIDERED

The reform of housing policy in China since about 1978 is closely link ed to the reform that has occurred in the Chinese governance. The pape r reviews this development in housing, focussing on the shift to a pro -market approach that has led to the commodification of housing. Key i ngredients in this development have been the recognition of private pr operty rights and the promotion of financial capital markets in the re al estate/housing sector. Much of the change in housing is linked to r eform of the 'state owned enterprises' (SOEs). Despite significant acc omplishments, there exists the potential for future problems. There is at present a surplus of privately provided housing units in the count ry that have been designed for higher-income families. At the same tim e, despite a growing number of unemployed as a result of SOE reform an d migration, there is an undersupply of low-cost housing to accommodat e these groups. If not addressed, this inbalance could result in futur e urban social unrest. (C) 1998 Elsevier Science Ltd. All rights reser ved.