20240429 Calibre April 2024 Investor Presentation.pdf
Housing in China
1. HOUSING IN CHINA
How popular housing is reflected in China
HOUSING IN CHINA
–Substandard Housing
–China’s Urbanization
–Results of Policies
China Daily/Routers, Nov. 2014
2. Three Points
• Rapid urbanization is occurring,especially in developing countries,
but overurbanization creates issues
• Limits opportunities and freedoms
• China is heavily betting on urbanization’s promises of modernization
and economic success
• Some practices are unsustainable and do not point to a promising future for all
• Housing development policies and construction must consider
human rights and environmental/ personal health effects
• Slums and unsustainable growth are bad for health,economics, and the dignity
of some people.
3. World Urbanization Prospects report, UN, 2014
Rural to urban migration is a trend all
over the world
• Urban dwellers have more freedoms and
opportunities, like better access to
healthcare or other public services
Urbanization
• How should cities accommodate more
people?
4. Urbanization and Housing Issues
Rapid urbanization in LDCs leads to Overurbanization
-more people than city has space and services for
Typically, overurbanization is reflected in sub-standard housing:
• Popular Housing- dwelled in by most, illegal, un-owned, and
not private or public housing
• Slums- legal, permanent, structures in decline
• Squatter Settlements- illegal improvements, bad land
Most of these places have a lack of services like water, sewer,
electricity, and public transportation. Life expectancy is lower.
8. Urbanization and Housing in China
• Urbanization is a policy and goal that is pushed by the Chinese
government
• Moving is encouraged by incentives, but many times farmers are
left with no option but to move off the land
• Most are moved into tall, dense apartment complexes
What happens (economically) if more people move to the city?
• More domestic demand and economic growth (hopefully)
11. Steve Engel, Bloomberg, 2014
Ghost Cities/ Neighborhoods
• The result of building with the expectation of people to move in
• New developments severely affected by China’s recent economic slowdown
• Many developments are for former rural residents
12. Visible Migrant Enclaves
UrbanVillages
• Villages inside cities or on urban outskirts
• 10 years ago,2/3 of migrants lived in housing built by villagers
• Household registration system (hukou) prevents migrant
workers from finding decent affordable housing
• Also prevents them from getting subsidized housing, health services,and
education
• Tendency of migrant workers (save, remain out of sight)
• Most affordable housing demands go unmet
14. Invisible Migrant Enclaves
Basement and CAD living spaces
• 5.6% of migrant workers lived in basements
• Officially, about 180,000 registered underground tenants in
Beijing
• Not all basement living is permitted
• Hukou reform aims to “officially” address these issues
17. Chinese Suburbs
• China must be careful about how it emulates the United States
in the area of suburban expansion
• If they followed the model in the United States, which has 250
million vehicles for 316 million people, China would have one
billion vehicles for 1.3 billion people (Sachs 2015, p. 374)
18. Three Points
• Rapid urbanization is occurring,especially in developing countries,
but overurbanization creates issues
• Limits opportunities and freedoms
• China is heavily betting on urbanization’s promises of modernization
and economic success
• Some practices are unsustainable and do not point to a promising future for all
• Housing development policies and construction must consider
human rights and environmental/ personal health effects
• Slums and unsustainable growth are bad for health,economics, and the dignity
of some people.