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Sustainability 2016, 8(4), 330; doi:10.3390/su8040330

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

1
Department of Construction and Real Estate, Southeast University, Nanjing 210096, China
2
School of Civil Engineering, Sanjiang University, Nanjing 210012, China
3
Department of Building and Real Estate, The Hong Kong Polytechnic University, Kowloon, Hong Kong, China
*
Author to whom correspondence should be addressed.
Academic Editor: Thorsten Schuetze
Received: 28 October 2015 / Revised: 28 March 2016 / Accepted: 1 April 2016 / Published: 5 April 2016
View Full-Text   |   Download PDF [210 KB, uploaded 6 April 2016]

Abstract

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. View Full-Text
Keywords: public rental housing; affordable housing; private sector; financial sustainability; optimization scenario; China public rental housing; affordable housing; private sector; financial sustainability; optimization scenario; China
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Li, D.; Chen, Y.; Chen, H.; Hui, E.C.M.; Guo, K. Evaluation and Optimization of the Financial Sustainability of Public Rental Housing Projects: A Case Study in Nanjing, China. Sustainability 2016, 8, 330.

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