Effective Housing Supply: Where and What to Supply?

The aim of this paper is to examine the effective housing supply in terms of spatial location and the type of housing in Shanghai, China. Official property registration data is used to carry out interactive regression analysis. The study finds that low-­‐‑rise housing projects in the suburbs show distinctive advantages over other categories of housing. The finding warrants the campaign launched in 2003, and strengthened in recent years by the municipal government, aimed at reducing the plot ratio of new property developments. This research contributes to a better understanding of issues surrounding housing supply in the local markets within China and provides the foundation for local governments to manage housing supply more effectively.