An Integrated Islamic Co-operative as A Housing Solution for China's Housing Affordability Issues

After the 1979 economy-open-up strategy, China saw long-term economic progress, which improved people's living standards while rising living costs. However, the vast amount of fiat money created by commercial banks has driven up housing prices, making it challenging for many middle- and low-inc...

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Bibliographic Details
Published in:Journal of economic cooperation & development 2023-01, Vol.44 (1), p.1-21
Main Authors: Ma, Yaxin, Taib, Fauziah Md
Format: Article
Language:English
Subjects:
Affordability
Banks
Commercial banks
Cost of living
Finance
Households
Housing costs
Housing prices
Interest rates
Islam
Islamic culture
Islamic financing
Islamic law
Money
Muslims
Non-Muslims
Prices
Religion
Religious beliefs
Trade
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Summary:After the 1979 economy-open-up strategy, China saw long-term economic progress, which improved people's living standards while rising living costs. However, the vast amount of fiat money created by commercial banks has driven up housing prices, making it challenging for many middle- and low-income households to own their own homes and causing a slew of societal issues relating to housing. Even though the Chinese government has been carrying out housing price control policies for a long time, the results are not very impressive. This paper combines best-tested and proven examples of housing work elsewhere in the world and proposes a collaborative solution with Islamic finance as the main principle. In order to observe whether Chinese households (minority Muslims and majority non-Muslims) are influenced by their religious beliefs or their perception of the proposed model's fairness and attractiveness, the author conducted a questionnaire. The result shows that most respondents agreed with the model's creative concepts and are prepared to try it. In particular, Muslims, employed, and over 30 years respondents are more interested. This paper suggests that the model may be piloted in areas where Islamic culture and religion are more prevalent, which may be more successful.
ISSN:1308-7800