1. Chinese Urbanism in Global Context
PLAN A6526
Columbia University
Prof. Weiping Wu
Implications of Land Finance

2. Key themes Impact of land financing on metropolitan spatial structure
Drivers of spatial expansion
More dispersed or compact development in the future?
Implications for real estate market
Local government interest in property development
Connection with housing boom

3. Urban expansion China added 23,700 sq. km of urban land 2000- 2010
Rest of East Asia combined only added 4,800 sq. km

4. Mechanisms of urban expansion
Redevelopment within central city
New housing construction outside central city, including gated communities
Industrial relocation
New industrial and high-tech parks
Satellite towns
Land urbanization v. pop. urbanization

6. Driving suburbanization
Land finance
“Upgrade” administrative status of locality
“Local accumulation is dependent on sales and development, while the local state apparatus grows along with urban expansion.”
Capital accumulation
financialization of homeownership
new town projects leverage bank loans
capital switching West to new Chinese investment zones

7. Impact on housing Supply mismatch Housing bubbles
supply focuses on high/luxury end
supply of low-to-middle housing insufficient
Housing bubbles
Housing investments exceeded 8% of GDP
Real estate as investment (asset rich, cash poor)
Affordability (lack of)
mortgage require at least 30% down payment

8. Land and housing prices in sync
Source: Su and Tao 2010.

9. Housing and household wealth
Source:
estate-bubble-looms/

10. China in global context

11. Chinese cities in global context