Analysis of Financing Model of Public Rental Construction

The construction of public rental needs much money and usually takes a long time, thus it can not only rely on limited financial investment, so financing becomes a bottleneck restricting the construction of public rental. At present, bank loans and project financing are two main financing models of the public rental, while PPP, REITs and other ways are rarely used. This paper introduces the traditional financing methods, focusing on the PPP and REITs. The paper summarizes the pros and cons of nine financing models and concludes that bank loans, project financing, BT, BOT, PPP, TOT, bonds, public rental REITs and ABS can pave the way for opening up social capital into the field of investment and construction of public rental channel. It is suggested that China raise housing finance though multiple channels, and seek to comply with China's specific situation of public rental financing model.