Property rights disputes and legal uncertainty in informal housing settlements
摘要
The majority of residential settlements in China are Small Land Right Housing (SLRH), an informal housing arrangement in which families stay on jointly held land that has subsequently been sold to non-indigenous people and other businesses. SPRH denotes a type of informal housing that lacks legitimate titles, hence making it unlawful. SPRH is becoming a popular way for Chinese city dwellers to avoid the rising expenses of official housing. Nevertheless, research on SPRH has been sparse. The majority of Shenzhen's population lives in SPRH and Full Property Right Housing (FPRH) developments, which are the focus of this study. The report examines the impact, or lack thereof, of de jure property rights on house prices. Using official Shenzhen SPRH and FPRH statistics, the housing market was analyzed using a matching technique and the Boundary Fixed Effect methodology. This method alleviated prejudice stemming from unobservable neighborhood and locational attributes. According to the empirical research, house prices are considerably and adversely impacted by the absence of de jure property rights. Assuming all other factors remain equal, apartments constructed in the SPRH design are typically 52.82% less expensive than their FPRH equivalents. Furthermore, the prices for property rights decline with age; this phenomenon varies across two administrative regions, differing in location and economic circumstances.