Single real estate developers’ innovations in housing design: an historical exploration based on China Vanke Co. Ltd.
Abstract
This paper focuses on the practices, innovations and design regarding housing supply developed by a single Chinese private real estate company, China Vanke Co. Ltd. between 1979 and 2016. In the last 5 decades, China experienced a period of rapid urbanization, accompanied by the introduction of numerous economic and institutional reforms impacting the nation’s model of housing supply. Significant changes disrupted the urban housing sector in the country, shifting the main supply system from a public welfare model to a market-driven one. Within this time span, most new residential properties were developed and marketed by large real estate enterprises, which became crucial players in establishing the new housing market. While there is an extensive body of literature examining China’s housing market formation and progression, most of these studies focus on the economic and social aspects of housing, including factors such as affordability, inequality, governance, preferences and choices. Single real estate firms’ innovations, as well as the links between housing designs and market supply and demand, have yet to be thoroughly explored. This latter area represents thus the main focus of this paper. Expanding from the specific case of Vanke, this paper seeks to discuss the innovative processes of a real estate enterprise and the role of a single company in shaping new housing designs, based on supply and demand transformations.
Keyword : housing, China, innovation, design, real estate
How to Cite
Carota, F. (2025). Single real estate developers’ innovations in housing design: an historical exploration based on China Vanke Co. Ltd. Journal of Architecture and Urbanism, 49(1), 11–22. https://doi.org/10.3846/jau.2025.21695
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Yusof, N., & Shafiei, M. W. M. (2011). Factors affecting housing developers’ readiness to adopt innovative systems. Housing Studies, 26(3), 369–384. https://doi.org/10.1080/02673037.2011.542097
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Nelson, R. (1991). Why do firms differ, and how does it matter? Strategic Management Journal, 12, 61–74. https://doi.org/10.1002/smj.4250121006
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Nicol, C., & Hooper, A. (1999). Contemporary change and the housebuilding industry: Concentration and standardisation in production. Housing Studies, 14(1), 57–76. https://doi.org/10.1080/02673039983000
Putnam, T. (2004). The modern home and the evolution of the house. The Journal of Architecture, 9(4), 419–429. https://doi.org/10.1080/1360236042000320237
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Zhai, X., Reed, R., & Mills, A. (2014). Embracing off-site innovation in construction in China to enhance a sustainable built environment in urban housing. International Journal of Construction Management, 14(3), 123–133. https://doi.org/10.1080/15623599.2014.922727
Zhang, J. (2019). Towards a new normal: The blurred landscape of architectural research in China. Architectural Design, 89(3), 120–125. https://doi.org/10.1002/ad.2445
Zhang, W., & Alon, I. (2010). A guide to the top 100 companies in China. World Scientific. https://doi.org/10.1142/9789814291477
Zhang, X. Q. (2002). Beyond the state: New forms of housing governance in China. Asian Geographer, 21(1–2), 53–66. https://doi.org/10.1080/10225706.2002.9684085
Zhang, X., & Skitmore, M. (2012). Industrialized housing in China: A coin with two sides. International Journal of Strategic Property Management, 16(2), 143–157. https://doi.org/10.3846/1648715X.2011.638945
Zheng, S., Wu, J., Kahn, M. E., & Deng, Y. (2012). The nascent market for “green” real estate in Beijing. European Economic Review, 56(5), 974–984. https://doi.org/10.1016/j.euroecorev.2012.02.012
Zhu, Y., & Lin, B. (2004). Sustainable housing and urban construction in China. Energy and Buildings, 36(12), 1287–1297. https://doi.org/10.1016/j.enbuild.2003.11.007
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Ball, M. (1999). Chasing a snail: Innovation and housebuilding firms’ strategies. Housing Studies, 14(1), 9–22. https://doi.org/10.1080/02673039982975
Barlow, J. (1999). From craft production to mass customisation. Innovation requirements for the UK housebuilding industry. Housing Studies, 14(1), 23–42. https://doi.org/10.1080/02673039982984
Barlow, J., & Ozaki, R. (2003). Achieving ‘customer focus’ in private housebuilding: Current practice and lessons from other industries. Housing Studies, 18(1), 87–101. https://doi.org/10.1080/0267303032000076858
Barlow, J., & Ozaki, R. (2005). Building mass customised housing through innovation in the production system: Lessons from Japan. Environment and Planning A: Economy and Space, 37(1), 9–20. https://doi.org/10.1068/a3579
Bemis, A. F. (1936). The evolving house. MIT Press.
Cao, J. A. (2015). The Chinese real estate market. Routledge. https://doi.org/10.4324/9781315857855
Chandler, A. D. (1990). Scale and Scope: The dynamics of industrial capitalism. Harvard University Press. https://doi.org/10.4159/9780674029385
Chandler, A. D. (2005). Shaping the industrial century: The remarkable story of the evolution of the modern chemical and pharmaceutical industries. Harvard University Press. https://doi.org/10.4159/9780674029378
Chen, F. (2001). New urbanism in the marginal community: An essay on Vanke four seasons flower city design. Journal of Architectural Engineering, (01), 56–58. (in Chinese)
Chen, J., & Han, X. (2014). The evolution of the housing market and its socioeconomic impacts in the post-reform People’s Republic of China: A survey of the literature. Journal of Economic Surveys, 28(4), 652–670. https://doi.org/10.1111/joes.12076
China Vanke Co. Ltd. (2010). P.R.C. Patent No. 201020189551.4. State Intellectual Property Office of the P.R.C.
China Vanke Co. Ltd. (2011). P.R.C. Patent No. 201120528100.3. State Intellectual Property Office of the P.R.C.
Chu, X. (2007). Vanke’s “standardization” road brings to industrialization of housing. Urban Development, (18), 32–33. (in Chinese)
Coiacetto, E. (2001). Diversity in real estate developer behaviour: A case for research. Urban Policy and Research, 19(1), 43–59. https://doi.org/10.1080/08111140108727862
Coiacetto, E. (2012). Understanding land development: A project-based approach. Csiro Publishing. https://doi.org/10.1071/9780643104150
Drucker, P. (1985). Innovation and entrepreneurship. Butterwoth-Heinemann.
Fainstein, S. S. (2001). The city builders: Property development in New York and London, 1980-2000. University Press of Kansas.
Fairweather, J. R., Lambert, S. J., Rinne, T., & Steel, G. D. (2009). Why do builders innovate? A review of the international literature on homebuilder innovation (Report to Technology Users’ Innovation (TUI) research program). https://www.researchgate.net/publication/277044483_Why_do_builders_innovate_a_review_of_the_international_literature_on_homebuilder_innovation
Fung, H. G., Jeng, J.-L., & Liu, Q. (2010). Development of China’s real estate market. The Chinese Economy, 43(1), 71–92. https://doi.org/10.2753/CES1097-1475430104
Gibb, K. (1999). Regional differentiation and the Scottish private housebuilding sector. Housing Studies, 14(1), 43–56. https://doi.org/10.1080/02673039982993
Harty, C. (2004). Innovation in construction: A sociology of technology approach. Building Research and Information, 33(6), 512–522. https://doi.org/10.1080/09613210500288605
Hendrikx, M., & Wissink, B. (2017). Welcome to the club! An exploratory study of service accessibility in commodity housing estates in Guangzhou, China. Social & Cultural Geography, 18(3), 371–394. https://doi.org/10.1080/14649365.2016.1181197
Hooper, A., & Nicol, C. (1999). The design and planning of residential development: Standard house types in the speculative housebuilding industry. Environment and Planning B: Planning and Design, 26(6), 793–803. https://doi.org/10.1068/b260793
Hooper, A., & Nicol, C. (2000). Design practice and volume production in speculative housebuilding. Construction Management and Economics, 18(3), 295–310. https://doi.org/10.1080/014461900370663
Yang, M. (2014). Learn from Vanke properties. Urban Development. (in Chinese)
Yusof, N., & Shafiei, M. W. M. (2011). Factors affecting housing developers’ readiness to adopt innovative systems. Housing Studies, 26(3), 369–384. https://doi.org/10.1080/02673037.2011.542097
Jenkins, P., & McLachlan, F. (2010). Is there a rôle for architects in mainstream private sector house building? The Journal of Architecture, 15(2), 153–180. https://doi.org/10.1080/13602361003791036
Jia, F., Gosling, J., & Witzel, M. (2017). Sustainable champions: How international companies are changing the face of business in China. Routledge. https://doi.org/10.4324/9781351286169
Jones, G., & Zeitlin, J. (Eds). (2007). The Oxford handbook of business history. Oxford University Press. https://doi.org/10.1093/oxfordhb/9780199263684.001.0001
Junhua, L., Rowe, P. G., & Jie, Z. (2001). Modern urban housing in China 1840–2000. Prestel.
Koebel, C. T. (2008). Innovation in homebuilding and the future of housing. Journal of the American Planning Association, 74(1), 45–58. https://doi.org/10.1080/01944360701768991
König, M. D. (2013). Dynamic R&D networks (Working Paper No. 109). University of Zurich, Department of Economics, Zurich.
Lazonick, W. (2006). The innovative firm. In J. Fagerberg, D. C. Mowery, & R. R. Nelson (Eds.). The Oxford handbook of innovation. OUP Oxford. https://doi.org/10.1093/oxfordhb/9780199286805.003.0002
Lazonick, W. (2013). The theory of innovative enterprise: Methodology, ideology, and institutions. In K. M. Jamee, B. Cyrus, & L. M. Patrick (Eds.), Alternative theories of competition: Challenges to the orthodoxy. Routledge.
Liang, W., Lu, M., & Zhang, H. (2016). Housing prices raise wages: Estimating the unexpected effects of land supply regulation in China. Journal of Housing Economics, 33, 70–81. https://doi.org/10.1016/j.jhe.2016.07.002
Lim, J. N., & Ofori, G. (2007). Classification of innovation for strategic decision making in construction businesses. Construction Management and Economics, 25(9), 963–978. https://doi.org/10.1080/01446190701393026
Lu, W. (2016). Small home, bigger lives. CITIC Publishing House. (in Chinese)
Mao, D. (2013, August 30). Vanke is to be a “city support service provider”. China Business Times, A02. (in Chinese)
Nelson, R. (1991). Why do firms differ, and how does it matter? Strategic Management Journal, 12, 61–74. https://doi.org/10.1002/smj.4250121006
Nelson, R., & Winter, S. (1982). An evolutionary theory of economic change. Harvard University Press.
Nicol, C., & Hooper, A. (1999). Contemporary change and the housebuilding industry: Concentration and standardisation in production. Housing Studies, 14(1), 57–76. https://doi.org/10.1080/02673039983000
Putnam, T. (2004). The modern home and the evolution of the house. The Journal of Architecture, 9(4), 419–429. https://doi.org/10.1080/1360236042000320237
Shan, X. (2000). Listening to the voice from the market. Business Weekly, (02), 29–31. (in Chinese)
Stevens, S. (2016). Developing expertise: Architecture and real estate in Metropolitan America. Yale University Press.
Vanke annual report. (1999). http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=000002&country=chn
Vanke annual report. (2005). http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=000002&country=chn
Vanke annual report. (2011). http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=000002&country=chn
Vanke annual report. (2014). http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=000002&country=chn
Vanke Guangzhou Branch. (2017, November 5). Presentation of Vanke corporate strategy [Interview with Jiang Quan, General Manager at Guangzhou Vanke].
Vanke. (2014). Corporate social responsibility report. https://www.vanke.com/en/upload/file/2016-05-09/367797f6-cc69-42af-9c25-c987a91a6dae.pdf
Wang, F. (2011). The nation’s first industry committee was established in March 1991 in Shenzhen Tianjing Garden. Residential and Real Estate, (2), 17–17. (in Chinese)
Wang, G., & Zhao, X. (2006). Vanke Fifth Park, Shenzhen, China. World Architecture, (03), 50–61. (in Chinese)
Wang, Y. P. (2001). Urban housing reform and finance in China: A case study of Beijing. Urban Affairs Review, 36(5), 620–645. https://doi.org/10.1177/10780870122185028
Wang, J. (2001). Formation of Vanke’s new core competencies: Impact analysis of China resources holdings Vanke. China Real Estate Finance, (06), 23–25. (in Chinese)
Wang, N. (2014). The role of the construction industry in China’s sustainable urban development. Habitat International, 44, 442–450. https://doi.org/10.1016/j.habitatint.2014.09.008
Wang, Z., Wang, X., & Li, Y. (2007). Business model innovation in China’s real estate industry: The case of Shenzhen Vanke. In 2007 International Conference on Wireless Communications, Networking and Mobile Computing (pp. 4209–4212). IEEE. https://doi.org/10.1109/WICOM.2007.1038
Wu, F. (2004). Transplanting cityscapes: The use of imagined globalization in housing commodification in Beijing. Area, 36(3), 227–234. https://doi.org/10.1111/j.0004-0894.2004.00219.x
Wu, F. (2015). Commodification and housing market cycles in Chinese cities. International Journal of Housing Policy, 15(1), 6–26. https://doi.org/10.1080/14616718.2014.925255
Wu, F., Xu, J., & Yeh, A. G.-O. (2007). Urban development in post-reform China: State, market, and space. Routledge. https://doi.org/10.4324/9780203962985
Xiao, N., & Zhu, J. (2003). Creating the dream factory of Vanke’s future. World Architecture, (11), 84–88. (in Chinese)
Xie, Z., Hall, J., McCarthy, I. P., Skitmore, M., & Shen, L. (2016). Standardization efforts: The relationship between knowledge dimensions, search processes and innovation outcomes. Technovation, Innovation and Standardization, 48–49, 69–78. https://doi.org/10.1016/j.technovation.2015.12.002
Xu, J. (1997). The tender for property management in Ludan Village was announced: Wanwu Property Management Company won the bid. China Housing Information, (01), 7. (in Chinese)
Zhai, X., Reed, R., & Mills, A. (2014). Embracing off-site innovation in construction in China to enhance a sustainable built environment in urban housing. International Journal of Construction Management, 14(3), 123–133. https://doi.org/10.1080/15623599.2014.922727
Zhang, J. (2019). Towards a new normal: The blurred landscape of architectural research in China. Architectural Design, 89(3), 120–125. https://doi.org/10.1002/ad.2445
Zhang, W., & Alon, I. (2010). A guide to the top 100 companies in China. World Scientific. https://doi.org/10.1142/9789814291477
Zhang, X. Q. (2002). Beyond the state: New forms of housing governance in China. Asian Geographer, 21(1–2), 53–66. https://doi.org/10.1080/10225706.2002.9684085
Zhang, X., & Skitmore, M. (2012). Industrialized housing in China: A coin with two sides. International Journal of Strategic Property Management, 16(2), 143–157. https://doi.org/10.3846/1648715X.2011.638945
Zheng, S., Wu, J., Kahn, M. E., & Deng, Y. (2012). The nascent market for “green” real estate in Beijing. European Economic Review, 56(5), 974–984. https://doi.org/10.1016/j.euroecorev.2012.02.012
Zhu, Y., & Lin, B. (2004). Sustainable housing and urban construction in China. Energy and Buildings, 36(12), 1287–1297. https://doi.org/10.1016/j.enbuild.2003.11.007
Zhu, J. (2006). Trying to write the tradition in vernacular Chinese – Shenzhen Vanke Fifth Garden Design. Times Architecture, (03), 75–81. (in Chinese)