Pre-Reform Housing System and Deng's Reform:
Since the start of the People’s Republic of China in 1949, the socialist government established the public housing system to meet housing needs of the people under communist ideals. All urban land was under control of the state, and all housing production, allocation, operation, and pricing were also under state regulation [1]. The main housing policy established in 1949 consisted mainly of 3 types of urban housing, large government subsidies, and a small renting fee for citizens. The 3 types of housing under the policy were 1) private housing, in which complete ownership was not possible due to the state owning the land, 2) work-unit housing, which was publicly owned and housed over 50% of residents, and 3) municipal public housing, also owned by the public. With the government’s strong belief of socialism over capitalism, China implemented large subsidies with low rent fees in hopes to minimize income gaps. However, within a few decades the government-dominated housing sector saw many problems such as housing shortages, corruption and inequality with housing allocation, and a large difference between living conditions on urban versus rural areas [1].
In the year 1980, China implemented an economic reform with the housing system issue as one of the top priorities led by national leader Deng Xiaoping; however solving the housing problem would be no easy task as China encountered more obstacles in the next few decades. In 1983, the government sought to protect owner’s private property in hopes of promoting home ownership. Between 1979 and 1988, the government experimented with different policies and projects in 3 phases.
Since the start of the People’s Republic of China in 1949, the socialist government established the public housing system to meet housing needs of the people under communist ideals. All urban land was under control of the state, and all housing production, allocation, operation, and pricing were also under state regulation [1]. The main housing policy established in 1949 consisted mainly of 3 types of urban housing, large government subsidies, and a small renting fee for citizens. The 3 types of housing under the policy were 1) private housing, in which complete ownership was not possible due to the state owning the land, 2) work-unit housing, which was publicly owned and housed over 50% of residents, and 3) municipal public housing, also owned by the public. With the government’s strong belief of socialism over capitalism, China implemented large subsidies with low rent fees in hopes to minimize income gaps. However, within a few decades the government-dominated housing sector saw many problems such as housing shortages, corruption and inequality with housing allocation, and a large difference between living conditions on urban versus rural areas [1].
In the year 1980, China implemented an economic reform with the housing system issue as one of the top priorities led by national leader Deng Xiaoping; however solving the housing problem would be no easy task as China encountered more obstacles in the next few decades. In 1983, the government sought to protect owner’s private property in hopes of promoting home ownership. Between 1979 and 1988, the government experimented with different policies and projects in 3 phases.
The first phase tried to sell houses at the cost of constructions, but due to low wages many were not able to afford them. The second phase tried providing subsidies however prices were still too expensive to be a homeowner and subsidies distribution was unfair. The third phase, starting in 1986, saw a housing reform scheme that really pushed for a housing market through loans, vouchers, and mortgages to boost house sales. However, due to the rising inflation and political instability in 1989, few cities fully took on the reform. In addition, many people were still living in public housing and the housing market was poorly developed [2].
The central government deepened the reform in 1994, implementing new policies such as introducing market vs. production prices for different income groups and to provide further rent reduction and exemptions for those who need it. Yet, the housing market was still lagging as it was mostly dominated by work-units and a few public enterprises, making it hard to become an open and freely competitive market. As of 2007, China’s central government had encouraged local governments to provide programs and more equal housing conditions, however many local authorities began to lessen the priority of housing by pushing citizens to meet their own housing needs. Overall, since the economic reform of 1980, China has seen a movement towards a marketization and local control of housing [2].
The central government deepened the reform in 1994, implementing new policies such as introducing market vs. production prices for different income groups and to provide further rent reduction and exemptions for those who need it. Yet, the housing market was still lagging as it was mostly dominated by work-units and a few public enterprises, making it hard to become an open and freely competitive market. As of 2007, China’s central government had encouraged local governments to provide programs and more equal housing conditions, however many local authorities began to lessen the priority of housing by pushing citizens to meet their own housing needs. Overall, since the economic reform of 1980, China has seen a movement towards a marketization and local control of housing [2].
Three Main Types of Housing and Accommodating Population Growth:
Apartment complexes are the most common and abundant type of housing in the Beijing area with high-rises reaching more than 20-stories high. There are some median-rise buildings, however due to high value of land, most developers choose to build high-rise apartments [3]. These apartments range from a median pricing of about $500 USD to a more expensive pricing of over $1800 USD a month depending on location, building, and unit size [4]. With a large influx of migrants, Beijing is in high demands for developing high-density buildings. A 2013 statistic found that 5 million people in Beijing were rural migrants in search of job opportunities and education due to the city’s vast urbanization. Thus, with an increasing population growing at a fast rate, the local Beijing government strove for high-rise projects one after another [1]. In Feng-tai district, considered a suburban area of Beijing, 72% of locals live in high-rise apartments. This number increases moving towards the urban city center with over 97% of people living in apartments [5].
Another form of housing that has been traditionally used in China for more than 2 millenniums, dating back to at least the Han dynasty (206 B.C. to 220 A.D.), is the siheyuan which directly translates to “courtyard”. These houses are traditionally one story, enclosed with a center courtyard, and meant for large families frequently consisting of multiple generations [4]. However, as the megacity of Beijing becomes more densely populated, siheyuan homes have seen a large decline. The decline of siheyuan as a foundational type of housing began during the Chinese Civil War around 1926. This was due to cultural changes, and towards the 1970s family planning, social changes, and advancement in technologies became large factors [6].
Despite the decline, efforts have been made to recognize and preserve some siheyuan neighborhoods, but many are still threatened to be replaced by demanding high-rise buildings. In attempts to preserve traditional Chinese culture and to bring the siheyuan design into the modern age, the Ju’er Hutong Neighborhood Project was built in 1990 by Wu Liang Yong. This neighborhood consists of two-story siheyuan buildings used as offices, restaurants, and a school [6].
A third type of housing, and the least common, is the villas and terrace homes. These houses are often times expensive where they can range from about $4.0 million USD to $8 million USD in certain areas of Beijing [5]. Due to a dense population, land prices and leases are very expensive in Beijing, and thus those who purchase these houses from developers are usually the upper class and wealthy. Villas and terrace houses are mostly located on the outskirts of the city, usually outside the fourth or fifth ring road zone [3]. Although it is the ideal home to have, only less than 1% of Beijing’s population lives in a villa or terrace home [5]. Developers of villas and terrace homes often use European or Western inspired architecture as they are very desirable designs by residents [3].
Residents' Living Conditions and Case Study in Fengtai:
The living conditions of Beijing residents can be very difficult due to increasing population, poor regulation and building policies, and the thwarted housing market. Beijing sees an increase of over half a million people every year with a current population of about 21 million [5]. In comparison, there is about 10 million people living in the Los Angeles County. This impacts living conditions greatly in Beijing as developers race to put up new apartments that are usually sub-part in conditions [4]. House prices are also affected as people have to pay about 6-10 times their total family income when the global standard of housing price is 3-6 times total family income, according to World Bank [5].
A case study conducted by Liu Wei Tao of Anyang Normal University in Henan Province China, surveyed a random sample of 400 residents living in the Fengtai district of Beijing. This is Beijing’s 2nd largest district located in the southwest region, and inhabits more than 1.3 million people.
The sample groups came from 4 different parts of the Fengtai district, and live in apartments (72% of surveyors), traditional homes (27%), or terraced houses (less than 1%). The survey asked residents questions pertaining to their housing conditions such as size, space, number of house members, as well as their satisfaction and concerns. Results showed that residents ranked house price, size and space as top concerns when buying or renting homes, and ranked housing and recreational facilities as mildly important factors. Of the 400 surveyors, about 70% were dissatisfied with their living conditions due to issues such as pricing, house size, location, and lack of amenities. Satisfaction varied depending on the type of housing, with 80% dissatisfied in the apartments sector, 85% dissatisfied in traditional or homestead houses, and 10% in terraced housing [5].
Surveys and data such as this case study can provide local government and developers with useful information on how to improve housing and living conditions for the people. With improvements in important areas such as housing prices and building conditions, residents can enjoy a better lifestyle and developers are able to attract more customers which can hopefully help improve Beijing’s housing market and local economy.
Sources:
[1] Zhou Yu, China's Urban Housing Reform---With Specific Emphasis on Property Ownership, 1999, Pg 6-11
[2] Chak Kwon Chan et al, Social Policy in China, Housing Policy, Pg 171-176 http://www.jstor.org/stable/j.ctt9qgsv5.15
[3] Friederike Fleischer, Suburban Beijing: Housing and Consumption in Contemporary China, 2010, Pg 33-68
[4] Kay Jones and Anthony Pan, Culture Shock! Beijing: A Survival Guide to Customs and Etiquette, 2008, Pg 60-64
[5] Liu Wen Tao, Living Conditions-The Key Issue of Housing Development in Fengtai District, 2014, http://ees.elsevier.com/hbrcj
[6] Chiu-Shui Chan and Ying Xiong, The Features and Forces that Define, Maintain, and Endanger Beijing Courtyard Housing, 2007, http://www.jstor.org/stable/43030789
Media:
Figure[ 1]: http://img.timeinc.net/time/magazine/archive/covers/1985/1101850923_400.jpg, 1985
Figure [2]: http://pbs.twimg.com/media/CIvCg-9VEAAv5rV.jpg 2015
Figure [3]: http://www.chinaculture.org/focus/focus/2010expo_en/2008-07/09/content_376684.htm 2009
Figure [4]: http://www.cultural-china.com/chinaWH/images/exbig_images/705f3c42c64b1f505a15689c29b3f55c.jpg 2013
Figure [5]: http://goodviewpro.com/UploadFiles/LV/CVA/rits%20garden/whole2.jpg
Figure [6]: http://www.chinatouristmaps.com/assets/images/city/fengtai-district-map.jpg
[1] Zhou Yu, China's Urban Housing Reform---With Specific Emphasis on Property Ownership, 1999, Pg 6-11
[2] Chak Kwon Chan et al, Social Policy in China, Housing Policy, Pg 171-176 http://www.jstor.org/stable/j.ctt9qgsv5.15
[3] Friederike Fleischer, Suburban Beijing: Housing and Consumption in Contemporary China, 2010, Pg 33-68
[4] Kay Jones and Anthony Pan, Culture Shock! Beijing: A Survival Guide to Customs and Etiquette, 2008, Pg 60-64
[5] Liu Wen Tao, Living Conditions-The Key Issue of Housing Development in Fengtai District, 2014, http://ees.elsevier.com/hbrcj
[6] Chiu-Shui Chan and Ying Xiong, The Features and Forces that Define, Maintain, and Endanger Beijing Courtyard Housing, 2007, http://www.jstor.org/stable/43030789
Media:
Figure[ 1]: http://img.timeinc.net/time/magazine/archive/covers/1985/1101850923_400.jpg, 1985
Figure [2]: http://pbs.twimg.com/media/CIvCg-9VEAAv5rV.jpg 2015
Figure [3]: http://www.chinaculture.org/focus/focus/2010expo_en/2008-07/09/content_376684.htm 2009
Figure [4]: http://www.cultural-china.com/chinaWH/images/exbig_images/705f3c42c64b1f505a15689c29b3f55c.jpg 2013
Figure [5]: http://goodviewpro.com/UploadFiles/LV/CVA/rits%20garden/whole2.jpg
Figure [6]: http://www.chinatouristmaps.com/assets/images/city/fengtai-district-map.jpg