Reportlinker has a research report on the Chinese small property right house market.
ReportLinker says that small property right houses in China refer to commercial houses built on rural collective land.
They are usually built by the cooperation of developers and village committees or by village committees themselves.
Due to the nature of the land, there is no house property right certificate issued by construction department for such a house. It cannot go public either.
The property right certificate for it is issued by the town government. The seller is the village committee.
Compared with ownership of commercial residential buildings that is directly protected by law, the property rights of such houses are less protected. Thus they are called "small property right houses". It is reported that small property right houses save two parts of expenditures —- the land grant fee and various taxes. Therefore the cost and price of this kind of house are very low. This is the main reason for its popularity.
The purchasers own full property rights. The rights are recognized by Chinese government and registered legally. The owners’ rights includes the use of the house and the land.
Earth Times states that as a result of urbanization and high house prices, small property right houses are springing up in China.