| Author: | Wong, King Wai Kelvin |
| Title: | Critical success factors for long-term rental apartments in Shanghai |
| Advisors: | Hui, C. M. Eddie (BRE) |
| Degree: | DIREC |
| Year: | 2023 |
| Subject: | Rental housing -- China -- Shanghai Rent charges -- China -- Shanghai Housing policy -- China Hong Kong Polytechnic University -- Dissertations |
| Department: | Department of Building and Real Estate |
| Pages: | x, 193 pages : color illustrations |
| Language: | English |
| Abstract: | Recent years have witnessed the growing social mobility of Mainland Chinese, which opens up good market opportunities for the development of long-term rental apartments (LTRA) as an emerging industry. Floating populations from less-developed areas significantly increased the populations of large cities, which has resulted in a materially strong housing demand. Comprehensive poverty eradication policy also encourages rural young and middle-aged laborers to move into adjoining towns and cities, most of whom rent there to meet their accommodation needs. Furthermore, the increasing trend of suburbanization is driving booming demand for rental accommodations. As urbanization increases the cost of land and housing, creating an imbalanced housing product supply for renting and selling. With the Chinese government enacting and implementing corresponding policies to boost the rental accommodations sector and participation of financial capital, domestic and international enterprise groups are progressively setting their business planning in rental apartment investment. Although this trend has led to the prosperity of the China rental apartment industry, it also triggers fundamental economic problems due to the inherent hidden risks of the current business situation, which potentially infringe customers’ rights and interests. The accumulation and outbreak of these problems damage the value-chain and development potential and even impact the stability of the traditional housing market in China. Therefore, it is important for policymakers, investors, and operators to understand which factors are essential for the success of the LTRA industry. Determining these underlying success factors can help government agencies enact effective policies for maintaining market stability and develop appropriate business solutions for conducting investment projects to achieve their goals. Shanghai, a typical metropolis, has been developing LTRA ahead of most other cities in China. Thus, it can serve as a suitable case study to take a deeper look in terms of identifying the success factors related to LTRA. In view of the diversification and constant evolution of the rental apartment business environment in China (including Shanghai), this paper aims to bridge the research gap between the financially imbalanced capital market and business models. Specifically, the research focuses on current industry operation models to identify the basic concepts and rules of the market through systematic analysis. The results can assist in formulating solutions to the fundamental problems that exist in Shanghai to maintain the market order and standards and policies that motivate rental apartment business. Additionally, innovative and financially sound business models can provide customers with a variety of cost-efficient options. The standardization of the industry and orderly formation of open market competition can promote the healthy development of LTRA in Shanghai. This research takes the following steps. First, it reviews the basic concept and management pattern-related theories of LTRA. Second, according to the current operation, it analyzes the development background and presenting situation of the industry, particularly with respect to the nature, risk, and types of LTRA. Third, according to the previous literature, the research identifies critical factors that directly affect the development of the LTRA industry in Shanghai and evaluates the development of operations to construct an academic research model with a proposed research methodology and timeline. This research applies the quantitative method, and research variables are derived from external environmental factors, such as the quality of the overall industry environment (legal and economic sentiments), market competition, government departments, and property management. The research identifies that Implementation of Legislative Policy, Legal and Regulatory Framework, Industry Market Condition, the Financial, the Operational Efficiency and the Business Nature of LTRA are the critical factors that affect the LTRA industry and may even constrain its current development. It also finds that the success of the LTRA industry is closely related to many factors, including (in order of importance) the quality of the external environment, degree of government support, performance of developers/investors, intentions of customers, and even the project itself. In particular, the collected data shows that the external environment and project characteristics have the highest correlation to the success of LTRA business. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 7364.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.64 MB | Adobe PDF | View/Open |
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