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From Land Use Right to Land Development Right: Institutional Change in China's Urban Development

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  • Jieming Zhu

    (Department of Real Estate, National University of Singapore, 4 Architecture Drive, Singapore 117566, rstzhujm@nus.edu.sg)

Abstract

There has been a fundamental institutional change during the transformation from the centrally controlled system to a market-oriented economy in China since the early 1980s. The socialist land use right as an institution of the out-going central planning system became an obstacle to the emerging land market for urban redevelopment, although land leasing as a new institution had created a real estate market primarily for the development of greenfield sites. From a case study of a district in Shanghai, it is discovered that rapid urban land redevelopment since 1992 has been greatly facilitated by the informal institution of a land development right. The land development right unlocks the process of land redevelopment in the central city, while the existing land users' land use right is taken care of during the gradual transition. Land use efficiency is improved to a great extent through land redevelopment to uses of higher productiv ity. However, the informal and insecure institution of the land development right induces hasty land redevelopment. Assisted by a capricious land use planning regime, the land development right yields sub-optimal development. Clarification of property rights is the goal for further institutional change.

Suggested Citation

  • Jieming Zhu, 2004. "From Land Use Right to Land Development Right: Institutional Change in China's Urban Development," Urban Studies, Urban Studies Journal Limited, vol. 41(7), pages 1249-1267, June.
    • Handle: RePEc:sae:urbstu:v:41:y:2004:i:7:p:1249-1267
    DOI: 10.1080/0042098042000214770
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    References listed on IDEAS

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    Cited by:

    1. Schröder Friederike & Waibel Michael, 2012. "Urban governance and informality in China’s Pearl River Delta: Investigating economic restructuring in Guangzhou," ZFW – Advances in Economic Geography, De Gruyter, vol. 56(1-2), pages 97-112, October.
    2. Ya Ping Wang & Yanglin Wang & Jiansheng Wu, 2009. "Urbanization and Informal Development in China: Urban Villages in Shenzhen," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(4), pages 957-973, December.
    3. Jianglong Chen & Jinlong Gao & Feng Yuan & Yehua Dennis Wei, 2016. "Spatial Determinants of Urban Land Expansion in Globalizing Nanjing, China," Sustainability, MDPI, vol. 8(9), pages 1-25, August.
    4. Peterson, George E., 2006. "Land leasing and land sale as an infrastructure-financing option," Policy Research Working Paper Series 4043, The World Bank.
    5. Joseph C.H. Chai, 2011. "An Economic History of Modern China," Books, Edward Elgar Publishing, number 13167.
    6. Deininger, Klaus & Jin, Songqing, 2009. "Securing property rights in transition: Lessons from implementation of China's rural land contracting law," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 22-38, May.
    7. Chunhui Liu & Weixuan Song & Chen Zhou, 2017. "Unsuccessful Urban Governance of Brownfield Land Redevelopment: A Lesson from the Toxic Soil Event in Changzhou, China," Sustainability, MDPI, vol. 9(5), pages 1-14, May.
    8. David J. EDELMAN & Menelaos TRIANTAFILLOU, 2012. "A Case Study Of Environmentally Sensitive Planning And Urban Design In Provincial China," Theoretical and Empirical Researches in Urban Management, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 7(2), pages 23-66, May.
    9. Fulong Wu & Chris Webster & Shenijing He & Yuting Liu, 2010. "Urban Poverty in China," Books, Edward Elgar Publishing, number 13189.
    10. Li Tian, 2014. "Property Rights, Land Values and Urban Development," Books, Edward Elgar Publishing, number 15856.
    11. Pengjun Zhao & Mengzhu Zhang, 2016. "The Role of Villages and Townships in Informal Land Development in China: An Investigation on the City Fringe of Beijing," Sustainability, MDPI, vol. 8(3), pages 1-21, March.
    12. Dinghuan Yuan & Yung Yau & Haijun Bao & Yongshen Liu & Ting Liu, 2019. "Anatomizing the Institutional Arrangements of Urban Village Redevelopment: Case Studies in Guangzhou, China," Sustainability, MDPI, vol. 11(12), pages 1-16, June.

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