Public Rental Housing Projects Research Articles

역세권 공공임대주택 재건축 사업성의 모의실험분석

역세권 공공임대주택 재건축 사업성의 모의실험분석

Residential experiences and satisfaction of public housing renters in Beijing, China: A before-after relocation assessment

The rapid expansion of affordable housing programs in Chinese cities in the past decade has attracted growing scholarly interest from various disciplines. However, little research has assessed the performance of these programs from the perspective of beneficiary families. Using Beijing as a case study, we investigate changes in the residential experiences of renters who recently moved into public rental housing projects, and how such experiences affect their residential satisfaction. Supported by a quasi-longitudinal survey and qualitative interviews, we find that satisfaction is less determined about the dwelling itself than the improved sense of stability, independence, and security that public rental housing offers to low-income households. This research offers a microlevel perspective for evaluating the recent affordable housing policy in China and a comparative lens for understanding the residential experiences of affordable housing renters in developing countries.

Research on the problems and improvement measures of Beijing public rental housing households

Through the investigation of some public rental housing projects in Beijing, the family structure, rent, income and satisfaction of the public rental housing households can be revealed. Through the statistical analysis, we found the following problems: some public rental housing family structure does not match with the type of occupancy; the rental income ratio of part of the public rental housing is unreasonable; some of the households has low satisfaction; the income of part of the public rental housing exceeds the prescribed upper limit. In view of the above problems, this paper proposes solutions: strengthen the planning and design of public rental housing; improve the rent subsidy mode of public rental housing; strengthen the construction of supporting facilities for public rental housing; promote the relevant legislative work of public rental housing.

A Study on the economic and policy feasibility study for the promotion of public rental housing project

A Study on the economic and policy feasibility study for the promotion of public rental housing project

Korean public rental housing for residential stability of the younger population: analysis of policy impacts using system dynamics

ABSTRACTTo alleviate the burden of high residential costs for the younger population, the Korean government has recently implemented a public rental housing program for those who are vulnerable in their residential conditions and endure low quality of life. This program is not yet fully effective in achieving its policy aim because of lengthy construction periods and consistent vacancies (despite high demand). To address this issue, policy guidelines are sought. This study comprehensively models supply and demand of public rental housing and analyzes the effects of diverse policies on the rental housing system behaviour. To represent the rental housing system, system dynamics is applied which consists of continuous simulation based on causal relationships among variables encompassing their time-lagged effects (and in which system variables are highly interdependent). By testing the effects of policy variables of public rental housing delivery strategies upon the system, the developed model provides an in-depth understanding of policy impacts towards achieving a desired policy objective (in this case to accommodate more public rental housing demands by minimizing vacancy rates). The results provide guidelines for developing detailed policies for more efficient public rental housing project delivery, which can contribute to alleviating the residential problems of the younger population.

Investment Valuation Model of Public Rental Housing PPP Project for Private Sector: A Real Option Perspective

Public rental housing (PRH) in China is mainly invested by the government at present. The huge capital demand brings it great pressure and a series of problems appear meanwhile. Public–private partnership (PPP) has been regarded as a way to solve the funding dilemma of PRH. However, the PRH project is not attractive for the private sector since the expected profit seems unsatisfactory based on traditional valuation methods. To improve this situation, this paper proposed an investment valuation model from a real option perspective. For the private sector, three types of options, including deferral option, abandonment option, and expansion option, were identified during the concession period of a PRH PPP project. On this basis, a two-stage binomial tree model was constructed for estimating the investment value. Then, the proposed model was tested in a hypothetical example of a typical PRH PPP project in Chongqing, China. The result shows that great potential value can be excavated through flexible strategies and adaption to uncertainties. This paper provides a deep analysis on the gaps of the real option application in public housing investment assessment, which is meaningful for improving the supply efficiency and financial sustainability of PRH.

The impact of public rental housing projects on neighborhood housing markets in Korea

After the Korean government initiated the provision of the permanent public rental housing in 1989, there has been a variety of policy measures to provide decent housing for low-income households. As of 2009, the ratio of the public rental housing to the total housing became 4.8 percent. It is widely agreed that the nation needs to build more public housing and to target a wider range of the types of households. However, the expansion of such development projects has resulted in worries and oppositions in the impacted neighborhoods, which have insisted that such developments bring about negative impacts on the adjacent neighborhoods. This study explores the impact of recently developed public rental housing (“Kukmin” rental housing) on the nearby housing markets. The paper adopts a quasi-experimental design to deal with the possible endogeneity for the construction of public rental housing by adopting an extended treatment to the canonical difference-in-difference method. This research finds that the public housing projects increase the value of surrounding properties.

Genetic Algorithm-based Optimal Investment Scheduling for Public Rental Housing Projects in South Korea

Genetic Algorithm-based Optimal Investment Scheduling for Public Rental Housing Projects in South Korea

Evaluation and Optimization of the Financial Sustainability of Public Rental Housing Projects: A Case Study in Nanjing, China

In recent years, Chinese governments have launched ambitious plans in developing public rental housing (PRH), which are almost impossible to accomplish without the involvement of the private sector. Yet, very few quantitative studies have been carried out to evaluate the financial sustainability of PRH projects in China, especially from the perspective of the private sector. This knowledge gap is bridged through the evaluation of the financial sustainability of a hypothetical privately owned PRH project in Nanjing, China as a case study, utilizing data of a state-owned PRH project and the classic discounted cash flow method. The results indicate that the studied project is financially infeasible, which means that private companies would not be willing to participate in the provision of public rental housing, if they merely focus on profits. Then, the most cost-effective optimization measure of the studied case is quantitatively selected from four possible optimization scenarios, leading to a financial balance. This paper presents the current financial status of Chinese PRH projects, thereby providing policy makers with useful references to effectively accelerate the private sector’s provision of PRH in China.

Assessing the integrated sustainability of a public rental housing project from the perspective of complex eco-system

Public rental housing (PRH) projects are the mainstream of China's new affordable housing policies, and their integrated sustainability has a far-reaching effect on medium-low income families' well-being and social stability. However, there are few quantitative researches on the integrated sustainability of PRH projects. Our study tries to fill this gap through proposing an assessment model of the integrated sustainability for PRH projects. First, this paper defines what the sustainability of a PRH project is. Second, after constructing the sustainable system of a PRH project from the perspective of complex eco-system, the paper explores the internal operation mechanism and the coupling mechanism among the ecological, economic and social subsystems. Third, it identifies fourteen indices to represent the sustainability system of a PRH project, including six indices of ecological subsystem, five of economic subsystem and three of social subsystem. Fourth, it qualifies the weights of three subsystems and their internal representative indices. In addition, an assessment model is established through expert surveys and analytic network process (ANP). Finally, the paper carries out an empirical research on a PRH project in Nanjing city of China, followed by suggestions to enhance the integrated sustainability. The sustainability system and its evaluation model proposed in this paper are concise and easy to understand and can provide a theoretical foundation and a scientific basis for the evaluation and optimization of PRH projects.

Assessing investment value of privately-owned public rental housing projects with multiple options

Public rental housing (PRH) has been officially designed as the mainstream of China's affordable housing. However, very few private developers treat PRH as an ideal investment target on account that its investment value seems too low on the basis of traditional valuation method represented by the Net Present Value (NPV) method. Thus, disregarding for financial and operational issues of PRH projects, the normal role of a private developer in the supply of PRH is an agent which earns meager but stable agent fee. Consequently, the government has to bear a heavy financial and operational burden in PRH projects aiming to keep the sustainability of PRH projects. To improve this situation, a privately-owned PRH provision mode, Building-Own-Operation-Concession (BOOC) mode, is proposed, where the private developer is in charge of the life cycle management of PRH projects through a concession contract from the government, including the fund-raising, construction, operation and even demolition. Besides complying with all PRH relevant regulations, the private developer is entitled with multiple options to abandon, transfer and expand of targeted PRH project. Based on the NPV method and Real Option Pricing Model, a method for assessing the investment value of a PRH project in BOOC mode is proposed. Then, the proposed method is exemplified in a hypothetical privately-owned PRH project in Nanjing city of China. The proposed provision mode BOOC and valuation method are expected to show a new perspective for accelerating the sustainable development of PRH.

도심형 공공임대주택의 사업타당성 분석

이 연구의 목적은 도심 내 젊은 주거취약계층을 위한 도심형 공공임대주택의 사업타당성을 분석하는 것이다. 도심형 공공임대주택은 높은 지가와 복잡한 권리관계로 인해 사업추진에 어려움이 많으므로 저렴한 택지 확보와 함께 사업비 절감방안이 강구되어야 한다. 이를 위해 택지확보 및 사업방식을 고려하여 사업유형을 구분하였고, 10개 사례지역에 대해 사업타당성을 분석하였다. 각 사례지역의 설계안에 기초하여 현금지출과 수입을 산출하였고, 지가상승률, 임대료시세반영률, 임대료상승률, 기금이자율 등 기준정보를 조합한 16개 시나리오에 대하여 현금흐름을 분석하였다. 분석결과, 국공유지 임차형은 사업초기 토지매입비 절감은 가능하나, 청산시점에서 토지를 정부에 귀속시켜야 하므로 전체 NVP가 낮아진다. 사유지 매입형은 토지를 매입하므로 초기 사업비는 많이 소요되나, 청산단계에서 토지 처분으로 인해 NPV가 향상되는 효과가 있다. 이러한 현상을 볼 때 지가가 낮은 지역에서는 임차방식으로 사업을 추진하고, 지가가 높은 지역에서는 매입방식으로 사업을 추진하는 것이 사업성 개선에 유리하다. 사업성에 가장 큰 영향을 미치는 요소는 지가상승률과 임대료 시세반영률이며, 임대료 시세반영률은 조정 가능한 변수이다. 그러나 이를 상승시키면 세입자 부담이 증가하므로 기금이자율 조정이 바람직한 것으로 판단된다. Korean government has launched a new public rental housing policy for younger generation suffering from instable housing conditions in CBD area. This paper is to analyze the financial feasibility of urban public rental housing projects, based on its cash flows. Urban rental housing projects should find out the way to reduce costs and to secure cheap land, because of the high land price in CBD area and complex relationship of legal rights. Project types are categorized by the land acquisition method and district characteristics. For 10 sample projects, financial feasibility was analyzed. Cash flows were calculated on the design plan and 16 scenarios were made by combining 4 important variables. The variables are increase rate of land price, increase rate of monthly rents, ratio of public and market rents, and the interest rate of National Housing Fund. The findings are as follows. Government land rent-type can reduce initial costs because it is not necessary to buy land. However, total NPV is lowered at the time of liquidation due to the land return. Private land acquisition-type require more initial costs. But the NPV at liquidation time increases with land disposal. To improve financial feasibility, acquisition-type should be preferred in high land-price area and rent-type should be preferred in low land-price area. Among influencing variables, the rate of increase in land price and the ratio of public and market rents turned out to be the most important. Although the ratio of public and market rents can be controllable, high ratio will cause the burden of tenants. Therefore, interest rate adjustment of National Housing Fund is more desirable.

Study on the Improvement of Public Rental Housing Development and Operation Model Based on Full Life Cycle Theory

Public rental housing plays an important role in the construction ofsecurity housing system in our country, but in the current development andoperation mode, public rental housing project of its own financial viabilityCo., need the government to give large amounts of funds and policy support, thedependence is strong, is not conducive to sustainable development projects,limiting its security role play. In this paper, by using the life cycle costtheory, the construction of public rental housing life cycle cost model,analyze the existing problems in the development and operation mode, and thenputs forward the improvement direction of development and operation pattern,causes it to have certain financial viability, provide policy recommendationsfor the future development of China's public rental housing.

A real option-based valuation model for privately-owned public rental housing projects in China

Chinese governments' great efforts in promoting the private sector's provision of public rental housing (PRH) have little effects, and the main reason is lack of proper provision mode and relevant valuation model. This knowledge gap is filled in by proposing a privately-owned PRH provision mode and a real option-based valuation model. In the proposed provision mode, the private sector primarily refers to private real estate developers, who will have ownership and decision rights of PRH projects. Then, the embedded real option at decision making stage is identified, and corresponding option premium (OP) is assessed by the Black–Scholes model modified with value leakage. Adding OP and conventional net present value (NPV) together, the expanded net present value (ENPV) is obtained as the investment value of a privately-owned PRH project. Finally, the proposed provision mode and valuation model are both exemplified in a PRH project, which has a negative NPV indicator but a positive ENPV indicator. Through the sensitive analysis, increasing the average rent of PRH buildings is found to be the most effective measure to enhance the ENPV indicator. Therefore, the proposed PRH provision mode is a feasible way to accelerate the private sector's provision of PRH in China, and the proposed valuation model can value a privately-owned PRH project objectively and comprehensively.

Research on Public Rental Housing Project Safety Assessment Model with Linguistic Information

Research on Public Rental Housing Project Safety Assessment Model with Linguistic Information