real estate entrepreneurship and social responsibility
TRANSCRIPT
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麻省理工学院 STL地产创业实验室
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Real Estate Entrepreneurship and Social Responsibility
Yu-Hung HongFounding Director
MISTI-STL China Summer Camp Program
Information Session 3
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Outline
• Innovation and Sustainability
• China’s Development Model
• Reason Behind the Model
• Opportunities and Challenges
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Innovation & Sustainability
Social Responsibility
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China’s Development Model
Local govern-ments
Public or private
developers
Central government
Attempt to achieve the policy goals
mandates
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The New Normal
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The New Normal
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Tianducheng, Hangzhou, Zhejiang
source: http://desertedplaces.blogspot.com/2013/08/a-parisian-ghost-town-in-middle-of-china.htmlanoramio)
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Housing Oversupply
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Housing Oversupply
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Central 18%
Local82%
Investment in Public Utilities and Infra-structure: 2011
Total: 5,906.7 Billions RMB
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Budget12%
Bank loans 27%
Others61%
Funding sources for Public Utilities and Infrastructure 2011
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Government Debt Audit
• 31 provinces
• 291 cities
• 2,778 counties
• 33,091 townships
• 2,454,635 loans
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Government Debt Audit• Debts need to be repaid by National and Subnational
governments.
• Debts that governments guarantee repayments if they go
into default.
• Debts that governments have to rescue (repayment
obligations?) if these loans go into default.
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Government Debts in China
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Subnational Government Debts in China
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Who borrowed?
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For What Purposes?
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Risks
• Local governments depend on land
leasing revenue to repay their debts. (By
the end of 2012, 11 province, 216 cities,
and 1,396 counties have used future land
revenues as collateral to borrow 3.5
trillion RMB, about 37% of all subnational
debts.)
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Risks
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Opportunities• Re-use under-utilized land and
buildings for:o innovative startups;o co-working spaces; ando co-living spaces.
• new branding strategy—environment conservation and cultural preservation.
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Challenges• Key stakeholders refuse to work
together.
• Real estate developers may not pay enough attention to the types of services demanded by customers.
• New education programs on real estate management may be unavailable.
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Local public finances
Proposed Land Tenure Reform Strategy
1 2
Ecology and farmland
preservation and food security
3
Rural land tenure
4
Integration of urban and rural land markets
Land value sharing
Rural leasehold system
Public land acquisition
system
Land use planning
Agricultural modernization
New town development
Transportation
Incomplete property
rights houses
Clearly defined and
secure leasehold
rights
Gradual legal reforms and policies to stabilize real estate prices
Banking and real estate investment
reformsLand quota
trading system
Alternative local revenue
sources