The financialization of rental housing in China: A case study of the asset-light financing model of long-term apartment rental

Chen, Jie; Wu, Fulong; Lu, Tingting

doi:10.1016/j.landusepol.2021.105442

Cited by 30 publications

(19 citation statements)

References 59 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The key role of the built environment in China’s growth has been increasingly linked to financialization by scholars, at least in urban geography (Chen et al, 2022; Jiang and Waley, 2021; Pan et al, 2017; Wu, 2019, 2021; Wu et al, 2020). This is more specifically the case in the post-GFC period, when scholars started to open the ‘black box’ of the financing circuits of urban production within the framework of growth and land revenue generation objectives implemented by local entrepreneurial states.…”

Section: Urban Redevelopment: the Increased Financialization Of The B...mentioning

confidence: 99%

“…On the other hand, the securitization of local debt as well as the development of shadow banking are both direct and indirect consequences of the state intervention to increase growth by investing in the urban built environment. Moreover, in line with the deleveraging of real estate companies’ debt and state programmes to absorb unsold properties or to renew the property markets, such as the shanty town renovation programme (He et al, 2020) or the emerging rental housing market (Chen et al, 2022), Wu (2021) also points out the constant need for the state to control and orientate spatially financialized housing consumption in order to deal with the trend of autonomous over-accumulation in the secondary circuit of capital.…”

Section: Urban Redevelopment: the Increased Financialization Of The B...mentioning

confidence: 99%

See 1 more Smart Citation

China’s extended urbanization driven by the “consumption city” in the context of financialized ecological civilization

Theurillat

Bideau

2022

Transactions in Planning and Urban Research

View full text Add to dashboard Cite

This article seeks to address current debates on ongoing China’s urban development and makes a theoretical proposal that links financialization and ecological civilization through the perspective of the increasing role of consumption in today’s transition to an upgraded domestic economy. While both financialized land value capture and the role of quality are now fundamental to the construction of the built environment in Chinese cities, we argue that the “consumption city” refers to an economic and urban production process as well as to a societal transformation. First, the economic upgrading has gone along with a greater mobility of people travelling ever longer distances who spend their income or invest in the places they travel to rather than necessarily their places of residence or of work. To attract these consumers, whether they are residents, tourist or property investors, the quality of the living and consumption environments play a dominant role in the complex urban production and in governance, beyond the classic model of development based on the city as a production place. Simultaneously, the rising role of financialization by external households as investors raises the issue of how and to what extent the construction of consumption places has been a way for the state to further enhance the land value capture in (new or not) cities. Second, as the latest government strategy, ecological civilization is part of a social engineering process aiming to shape people’s lifestyles in terms of both their everyday consumption practices and their mindsets. The current transition aims to “civilize” citizens by enlarging the scope of urban consumers beyond the upper and middle classes to people from rural areas who are encouraged to become urban. Ecological civilization promotes a better quality of life for all, together with new outdoor and experiential activities, although this comes with a high ecological footprint.

show abstract

Section: Urban Redevelopment: the Increased Financialization Of The B...mentioning

confidence: 99%

Section: Urban Redevelopment: the Increased Financialization Of The B...mentioning

confidence: 99%

China’s extended urbanization driven by the “consumption city” in the context of financialized ecological civilization

Theurillat

Bideau

2022

Transactions in Planning and Urban Research

View full text Add to dashboard Cite

show abstract

“…BTR projects can also present an opportunity for innovative financing solutions within the PRS for young adults who cannot generate large funds for securing long-term tenancies or homeownership. One of the concepts is discussed in detail by Chen, Wu and Lu [5] as a case in China where rental loans are used as a financial model to secure long-term rental arrangements. Similar to mortgage repayments for homeownership, rental loans refer to a financing model where financial institutions lend lump sum amounts to a prospective tenant, which is used to pay upfront rent for a certain period of time and is repaid through installments [5].…”

Section: Rental Loans and Mortgagesmentioning

confidence: 99%

“…One of the concepts is discussed in detail by Chen, Wu and Lu [5] as a case in China where rental loans are used as a financial model to secure long-term rental arrangements. Similar to mortgage repayments for homeownership, rental loans refer to a financing model where financial institutions lend lump sum amounts to a prospective tenant, which is used to pay upfront rent for a certain period of time and is repaid through installments [5]. With Australia embracing disruptive technologies and economic innovation, the adoption of innovative financial options and solutions to facilitate young adults to acquire housing can definitely be beneficial.…”

Section: Rental Loans and Mortgagesmentioning

confidence: 99%

“…The concept of building housing developments with the intent to rent is not new as many private landlords have invested in developing rental properties with the sole intention to rent. However, with the involvement of institutional investors and presenting these housing developments as an asset class, the shift towards these types of housing infrastructures is imminent as they can present a better rate of return than other available investment options [5]. The concept behind the BTR model is that each block of the PRS may be managed by a single institution [6].…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Systematic Literature Review to Identify the Critical Success Factors of the Build-to-Rent Housing Model

2022

View full text Add to dashboard Cite

The current young generation in Australia is increasingly facing issues around housing, and the demand for affordable and personalised housing alternatives to suit the needs of the younger population has given rise to a variety of housing options. The Build-to-Rent (BTR) housing supply model is one such option that was recently introduced with the aim to provide diversity and choice within the private rental sector (PRS). Although the idea of building housing infrastructure to rent is not new, the formalisation of the BTR concept is currently underway and requires a comprehensive understanding of the various factors influencing its successful adoption. With the introduction of big market players such as institutional investors, understanding the critical success factors (CSFs) for producing successful BTR projects is crucial for its adoption as a feasible option for housing provision, especially for the younger population. Through a systematic literature review approach using the Web of Science and Scopus databases, recent literature from 2011 to 2021 were reviewed to identify CSFs related to the BTR housing model. These CSFs help distinguish the BTR paradigm within the general housing market system. A total of 32 CSFs were identified through the review process. Major factors relate to investors’ interest and willingness, affordability, and housing reforms and awareness. These CSFs identify the key areas of interest within the BTR research which can help create a comprehensive understanding of the current BTR scheme, along with providing a baseline for future research.

show abstract

Special Features and Development Prospects of Social Rental Housing in Russia

Generalova

Generalov²

2022

Lecture Notes in Civil Engineering

View full text Add to dashboard Cite

The financialization of rental housing in China: A case study of the asset-light financing model of long-term apartment rental

Cited by 30 publications

References 59 publications

China’s extended urbanization driven by the “consumption city” in the context of financialized ecological civilization

China’s extended urbanization driven by the “consumption city” in the context of financialized ecological civilization

Systematic Literature Review to Identify the Critical Success Factors of the Build-to-Rent Housing Model

Special Features and Development Prospects of Social Rental Housing in Russia

Contact Info

Product

Resources

About