public, private and social housing in post-crisis east asia richard ronald [email protected] urban...
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![Page 1: Public, Private and Social Housing in Post-crisis East Asia Richard Ronald r.ronald@uva.nl Urban Studies University of Amsterdam](https://reader036.vdocuments.site/reader036/viewer/2022062515/56649cf15503460f949c093b/html5/thumbnails/1.jpg)
Public, Private and Social Public, Private and Social Housing in Post-crisis Housing in Post-crisis
East AsiaEast Asia
Richard Ronald [email protected]
Urban Studies University of Amsterdam
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Different Housing PathwaysDifferent Housing Pathways
• European social housing problematised, stigmatized and residualised since 1980s
• Transformation of housing associations into self financing, market facing social enterprises
• Public housing provision (of a more social nature) revitalized in East Asia since 1998 (especially after 2008)
• But why is policy socializing and how manifesting differently in each country?
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The Origins of Housing PolicyThe Origins of Housing Policy• Colonial legacies, the presence of China
and the desire to ‘catch up’
• Policy goals under ‘Developmental’ States – shaped public housing policy: house workers,
extend urban infrastructure, realise potential land values, sustain employment & rapid growth
• Housing policy in ‘Productivist’ regimes – welfare state expansion either sacrificed or
focused on economic objectives (Holliday 2000; Kwon, 2005)
• Deep Interventions: Public housing rather than Social housing: – commodified (Private) rather than de-
commodifying (Doling 1999, Groves et al 2007)
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Examples: Singapore & Hong KongExamples: Singapore & Hong Kong
• Singapore (HDB)– Owner-occupied 29% to 92% (1970-2002)– Public sector 83%+ of all housing– CPF circuits of capital– Regulated second hand market
• Hong Kong (HKHA)– Public rental build & slum clearance 1970s– Keeping wages low and welfare state small
through public housing (Castells et al,1990) – Shift to HOS policies in 1980s and 90s– In 2009 29% Public rental, 16% public HOS
• Public Housing policy as main Pillar of Welfare, Urban & Economic Policy
• Comparable approaches: Japan (1950s & 60s) Taiwan (70s-90s), China (90s-2000s)
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Asian Financial Crisis!Asian Financial Crisis!
• Watershed moment in East Asian socioeconomic pathway
• End of rapid growth, high/full employment era
• Undermined asset and real estate values
• Tested security and adequacy of welfare measures
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The New Policy The New Policy LandscapeLandscape
• New role of developmental state in slower growth era (Kharas & Gill 2009)
• Ongoing processes of neoliberalization
• Socioeconomic polarization (kakusa shakai)
• Democratization and intensified political contestation
• Era of in-affordability & house price volatility
• The state as competent housing provider
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2008 and the ‘Global’ Crisis!2008 and the ‘Global’ Crisis!HouseHouse price fluctuationsprice fluctuations
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2005 2006 2007 2008 2009 2010 2011
%
China Hong Kong Japan Singapore South Korea Taiwan
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Taiwan – new social housingTaiwan – new social housing
• Long term promotion of home ownership (67% to 82%,1976-2000)
• Less than 0.8% public rental housing
• Two major periods of house price inflation in 1987-1990 and 2005+
• Snails without Shells - The Social Housing Promotion Alliance
• Late-2010 New luxury tax on quick sales of 2nd homes (Chen 2011)
• 5 new social rental housing projects
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GDP growth rate (%) Percent of unemployed to labor force (%)
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South Korea’s Hybrid South Korea’s Hybrid social housing sectorsocial housing sector
• Supply focus: 10.7 million housing units constructed 1989-2007
• 1970s short term lets; Permanent public housing program (1989) Fixed-tenure rental (5-, 10-, 30- & 50-year) 1990 and 2000s
• 1998-2008 (Kim & Roh) Market reforms and one million new social housing program - shortage over but rising housing market inequalities
• 2008 Bogeumjari program: 1.5 million units - 53% rental 47% subsidized purchase
• Public rental housing <7.5% of housing 2000; 9.7% 2008, expected 12%+ by 2018
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Housing policy plan (supply) 2009-2018Housing policy plan (supply) 2009-2018
Category Supplied Units
(expected) Income Residency Period Description
Homeownership 700,000 Permanent Mid to small-sized affordable housing
Public Rental Housing
200,000 10-year - Transfer (via sale) to homeownership after 10-year rental - Home-share step-repayment
Chonsei scheme 100,000
Deciles 3 to 5
10-20 year - No monthly rental fees - Inner-city neighborhoods
National Rental Housing
400,000 Deciles 2 to 4 30-year - Affordability: 60 to 70% of market price - Sliding scale on household income - Optional payment: Chonsei or monthly rental fees
Rental Housing
Permanent Rental Housing
100,000 Decile 1 No limit - 3% of market rent - Funding source from government direct subsidy
Total 1,500,000
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Social and Affordable Social and Affordable Housing in ChinaHousing in China
• Post-1980 economic reform led by housing market reform (urban H.O. grows 18%-82% 1980-2004)
• Work Unit Housing abolished (1998) for commercial housing; affordable housing; government assisted rental
• Uneven public measures & house price inflation = housing market polarisation & economic instability
• The ‘comfortable society’ making access to quality dwelling a universal ‘basic housing right’
• New housing policy implementation framework; spending 1% GDP on affordable housing by 2020
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New DirectionsNew DirectionsThe end of an era and the beginning of the nextThe end of an era and the beginning of the next
• Changes in Singapore, Hong Kong and Japan?
• Demographic and family change; New political, democratic and socioeconomic context
• Capacity and demand to expand public provision
• Building new social housing models or adapting the market to serve emerging developmentalism
• Lessons for Europe? tapping housing wealth; failed Asset based welfare (Doling and Ronald 2010, 2011, Ronald and Doling 2010, 2012)