Abstract
Research on urban housing policies in socialist China and Eastern European countries has concentrated on understanding the production and distribution of state housing. More recently researchers have shifted their attention to the commodification of urban housing and establishment of private housing markets. A very important aspect of socialist housing ‐ the process of nationalisation of privately owned urban housing in the early period of socialist development ‐ has been relatively neglected. Ignoring this aspect of the historical background of socialist urban housing policy may create difficulties in understanding the nature of the public sector and recent privatisation experience. This paper intends to fill this gap in relation to China by examining both the nationalisation of urban privately owned housing in the early years of socialism and the more recent privatisation and commercialisation of the urban housing sector. This highlights shifting approaches to the urban housing market in different periods of socialist development and helps in understanding recent developments in housing reform. It examines the development of policy and the resultant impacts on the private housing market in Xian, one of the major cities in central China. The pattern of private ownership, the state policy of nationalisation and the more recent commercialisation of urban public sector housing are the main issues examined.