PROPERTY MARKET UNDER TRANSITIONAL ECONOMY IN CHINESE CITIES: CASE STUDY OF INSTITUTIONAL MECHANISM OF PROPERTY DEVELOPMENT IN SHANGHAI
||Li, Ze; Zhang Tianjie
||PROPERTY MARKET UNDER TRANSITIONAL ECONOMY IN CHINESE CITIES: CASE STUDY OF INSTITUTIONAL MECHANISM OF PROPERTY DEVELOPMENT IN SHANGHAI
||Book of Abstracts: 13th Annual European Real Estate Society Conference in Weimar, Germany
||The paper is to understand the institutional mechanism of property market in China. The institutional changes initiated after China’s economic reform since 1978 have brought about a new mechanism for property development. The built environment evolves logically through the property development process which is defined by institutional mechanism. Urban growth begins to be led by market forces formulated within social relations shaped by the gradual institutional change. Using Shanghai as a case study, this paper explores the impact of institutional change on China’s urban development by examining the formation of property market in the transitional economy. Objective: The core idea of this paper is to understand the institutional change and its influence on the formation of property market in Shanghai. It includes, first, to understand the institutional mechanism of property market and how the mechanism evolve according to the institutional change; second, to analyze the evolution of the actors involved in property market. Methodology: this paper is a theoretical instructed and empirical based study; a framework of institutional analysis was used in interpreting the data collected through field reconnaissance and interviews. Adopting the main concepts of neo-institutional economy theory about institution, institutional change and property market, a theoretical framework of institutional analysis was developed. Then, at the empirical level, a street community in Shanghai coving an area of 1 km˛ was chosen to investigate the property right evolution. The detailed analysis of property right evolution will fill the gap of institutional analysis of property development mechanism under transitional economy. Conclusion: the path dependent evolution of institutional change from planning economy to market economy defined the path of property development in China. Property market was shaped by self-reinforcing mechanisms cultivated by interest groups. Contribution: This paper contributes to the institutional economic analysis of the built environment in general and to the understanding of China’s urban development in particular. First, a theoretical framework has been developed to analyze the institutional organization of the property market. Second, the path dependent evolution of institutional change from a central planning system to a market system provided a chance to analyze the character of property market under transitional economy.
||institutional change; institutional mechanism; property market
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