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dc.contributor.advisorRandolph B. Cohen.en_US
dc.contributor.authorLam, Terence T. (Terence Ting Yin)en_US
dc.contributor.otherSloan School of Management.en_US
dc.coverage.spatiala-cc---en_US
dc.date.accessioned2011-09-13T17:55:20Z
dc.date.available2011-09-13T17:55:20Z
dc.date.copyright2011en_US
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/1721.1/65807
dc.descriptionThesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2011.en_US
dc.descriptionCataloged from PDF version of thesis.en_US
dc.descriptionIncludes bibliographical references (p. 67-68).en_US
dc.description.abstractChina has the largest housing market in the world and the property market continues to advance at an astonishing pace. In 2009, 22.2% of China's RMB 19.3 trillion fixed asset investment and 17.9% of foreign direct investment were invested into the real estate sector. At the same time, the highly dynamic market structure and huge regional disparities in China created mixed interpretation and confusion. Nationwide statistics blending urban and suburban prices and the indifferent treatment towards subsidized housing and private housing overshadowed the actual development on the local level. With unprecedented investment pouring into the Chinese real estate market and sky rocketing property prices in most major cities, the legendary short-seller James Chanos described the Chinese real estate sector as "Dubai times 1,000 - or worse". Yet, another American financial guru Jim Rogers openly debunked the statement from James Chanos and remained his bullish views on China. This thesis is divided into two sections. First it reviews the historical development from the Chinese property market. The paper explores the current situation of the market and focuses on the affordability comparison between the national level and the local levels. On a national level, housing prices grow at a pace similar to China's GDP growth supported by an even faster growth in income levels. Affordability ratios are in line with international standards and below the levels experienced by Japan and US during their bubble era. At the local level, different cities experienced drastic differences in price growth and supply surpluses. In some cities, even the suburban areas are beyond the affordability of an average household. In the second section, this paper explores the development of affordable housing, the new frontier of Chinese real estate market. The emergence of the affordable housing market together with new housing policies has different implications and opportunities to the incumbent property developers as well as potential low-end disruptors in China. This paper concludes with recommendations on some of the available investment options for a bearish investor in the Chinese real estate market.en_US
dc.description.statementofresponsibilityby Terence T. Lam.en_US
dc.format.extent68 p.en_US
dc.language.isoengen_US
dc.publisherMassachusetts Institute of Technologyen_US
dc.rightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.en_US
dc.rights.urihttp://dspace.mit.edu/handle/1721.1/7582en_US
dc.subjectSloan School of Management.en_US
dc.titleThe affordability of China's residential real estate market and opportunities for property developersen_US
dc.typeThesisen_US
dc.description.degreeS.M.en_US
dc.contributor.departmentSloan School of Management.en_US
dc.identifier.oclc750183037en_US


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