ABSTRACT
This chapter examines China’s urban housing situation and analyzes a dynamic process in which the Chinese urban housing fully commercializes. To this end, it investigates the formations of rents and housing prices under the traditional system and during reform. The dual housing price system and the resultant segmentation of urban housing market are presented. Analyzing dynamic adjustments between rents and prices and between market developments and administrative measures suggests an avenue to the convergence of the dual prices and the integration of the segmented market. Housing reform policies and fundamental economic factors facilitating the dynamic adjustments are examined. Most recent developments are presented to show that China’s urban housing commercialization has indeed taken shape successfully.
