The end of ‘toleration’? Policy ambiguity and converted-housing occupancy in China

Abstract

An uncommon ‘homeowner’ protest in Shanghai in 2017 manifested public anger towards a government crackdown on commercial property converted apartments (CPCAs). Spotlighting this previously hidden but significant Chinese housing submarket, the episode highlighted ‘homeowner’ concerns over insecure property rights. Internationally, commercial-to-residential conversion is nothing new. Indeed, it has been championed as a contributor to addressing housing shortage. How has an internationally well-established practice generated such tensions in China? Focusing on the Shanghai case, this paper analyzes the processes involved in commercial-to-residential apartment conversion by examining interactions between state, market players and ‘homebuyers’, drawing on discourse and policy analysis. Reflecting consideration for short-term gains and conflict avoidance, state regulations were historically vague and open to interpretation. Non-government stakeholder behaviour was underpinned by hopes that legitimacy of residential use would be subsequently confirmed. The 2017 ‘policy clarification’ has placed CPCA owners at risk of major financial losses and possibly even homelessness. Historic policy ambiguity and erratic enforcement stored-up trouble for the future.

Keywords:

• Insecure homeownership
• building conversion
• ambiguity
• policy failure
• Shanghai China

Acknowledgements

We are grateful for the initial feedback from guest editors Professor Ray Forrest, Professor Ngai Ming Yip and Professor Jie Chen who also jointly organized ‘The Role of Housing in China’s Urban Transformation’ Symposium in Hong Kong, July 2018. All participants’ comments during the symposium are greatly appreciated. We also want to thank Professor Ya Ping Wang for the insightful comments on an early draft.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 China Index Academy (CIA) is the largest independent property research organization in China. CIA has built closely cooperative relationships with National Bureau of Statistics of China, State Housing Management Bureau, Real Estate Trading Centre, and other government institutions, and therefore its data source is authoritative and reliable.

2 The city’s 1999–2020 master plan referenced the establishment of 11 new towns although this was reduced to nine in the 2006 edition (SMG, 2003, 2006).

3 The concepts of Shanghai’s new town plans emphasize the integration of residential and industrial functions. This can be found at many government websites (e.g., http://www.jdxc.net/xcgh/ztgh/index.shtml)

4 Now evolved into Bureau of Planning and Land Resources

Additional information

Notes on contributors

Jin Zhu

Jin Zhu is a PhD Candidate and Research Assistant in the City Future Research Centre, University of New South Wales. His key research interests include housing policy, urbanization and urban governance. His ongoing PhD thesis explores housing affordability and planning regime in urbanizing China. He received his Bachelor and Master’s Degree in urban planning from Zhejiang and Tongji Universities, China. During his previous career as a planner in Shanghai, he engaged in a number of strategic planning projects across China.

Bingqin Li

Bingqin Li is an Associate Professor and Director of the Chinese Social Policy Program at the Social Policy Research Centre, UNSW. She has a PhD in Social Policy (LSE, UK) and a PhD in Economics (Nankai University China). She has more than 15 years of experience in teaching and researching on urbanization, development and social policy. Her research focus is on social policy related to urbanization and migration, technological innovation and social inclusion and social policy governance in China. She has consulted multiple international organizations: WHO, UNRISD, UNESCAP, IIED, UCLG, UNICEF.

Hal Pawson

Hal Pawson is a Professor of Housing Research and Policy at the University of New South Wales and an Associate Director of UNSW’s City Futures Research Centre. He was formerly a researcher at Heriot-Watt University, Edinburgh from 1995–2011. In the UK and in Australia he has led numerous national and local research studies spanning a diverse range of topics including social housing, homelessness, private rental markets and urban renewal.