A study on the Sustainability of the housing finance system in China

China adopted the socialist welfare housing system since the founding of the People's Republic of China in 1949. Urban housing reform has been a major component of China's economic reform since 1979. Nowadays, huge housing need, low affordability and oversupply of high-end commodity housing are the major concerns and the resolution of the problem heavily depends on an efficient and sustainable housing financing system. The purpose of this paper is to examine issues related to the sustainability of the Chinese housing finance framework. Based on the review of the socialist housing finance structure and the discussion of the recent housing reform policies, recommendations are made concerning the means to establish a sustainable housing finance system for China.