Market Segmentation and Consumer Characteristics of Commodity Housing in Guangzhou: An Analysis of Household Survey Data

Abstract

The housing reform in China aims at commodification and privatization of urban housing. Using data from a household survey conducted in Guangzhou, the present paper examines the relationship between a household's socio-economic characteristics and the source of housing provision, and the factors governing the tenure form. The results show that households with different sets of characteristics are associated with particular housing types, defined with reference to the source of provision, and that owners and renters differ systematically in socio-economic characteristics. Open market housing residents earn the highest income, work mainly as managers in enterprises of various ownership types or as proprietors of petty trades, and are the youngest among residents of all types of housing. Those in work unit housing are the best educated, and work mainly as managers in state-owned enterprises. Those in housing bureau housing and resettlement housing are relatively old, less well educated, earn lower incomes and work mainly as technical and manual workers. With regard to the tenure mode, owners are likely to be those who are better educated, earn higher incomes, relatively young, work mainly as managers or are proprietors of petty trades, and have longer years of service in their present employment than renters. The results also show a rather high degree of privatization in the housing sector in Guangzhou and the rapid development of its open market housing sector. However, the ownership rate is low in the work unit housing sector, which suggests the need for further reform, if promotion of homeownership is an end.