chapter  5
The ups and downs of the real estate market and its relations with the rest of the economy in China
Pages 17

This chapter explains real estate (RE) ownership security that critically examines the bases of equating land registration (LR) to ownership security. It concentrates on defining the actual role of LR and its likely links to economic development. It also adopts the concept of ownership security as explained by Honore, Schlager and Ostrom, Besley, Sjaastad and Bromley, Antwi, Food and Agriculture Organisation, and Abdulai, since such an explanation adequately captures the right parameters on which RE ownership security is based. The RE market management information guarantees the RE ownership security in developing countries via LR. The argument that equates LR to ownership security is extended by asserting that LR makes RE suitable collateral and thus guarantees access to formal capital for investment. The chapter critically examines underpinning theoretical principles of LR systems in order to explain why LR cannot guarantee RE ownership security. It also defines other determinants of economic development as good governance and prudent management of nation's resources.