to the Ministry of Housing and Urban and Rural Development, deputy minister Qi
cited a NBS survey that about 40% households purchased their homes from private
market, slightly more than 40% obtained theirs from privatization of govt-owned
housing, and 12% inherited private homes.
implications. First, due to high ownership in urban China, a majority of the
massive social housing program is for urban newcomers from rural areas; (2)
Since China only started its market oriented housing reform from mid-1990s and
only built about 60mn units of private homes, many older homes (about 60%
existing urban homes) built during the central planning era might have to be
demolished due to low quality. That's why home demand (and commodity demand)
will be elevated in coming years.