Financial Balance Mechanism in the Transformation of Urban Village Housing to Government-Subsidized Housing: A Case Study of the LM Apartments Project in Shuiwei Village, Shenzhen.

Financial balance is a requisite for the sustained operation of urban regeneration projects in the stock-based planning period. From the perspective of financial balance, this paper analyzes the operation strategy and mechanism of the LM Apartments Project in Shuiwei Village of Shenzhen from four aspects: the financial input in the initial stage, the revenue and expenditure in the operational stage, the financial relationship between multiple stakeholders, and the control of non-financial costs. The findings reveal that under the tripartite cooperation between the government, the state-owned enterprise, and the village collective, the LM Apartments Project in Shuiwei Village is a model of urban village regeneration that effectively supplements Shenzhen's government-subsidized housing system. Of the three parties, the government provides policy support and asset-light investment; Shum Yip Group, a state-owned enterprise, has carried out innovative practices of urban village regeneration while making a small profit; the Shuiwei village collective has achieved sustained economic benefits and a high-quality living environment. The paper further discusses the external effects of this practice and probes into the conditions for the wide application of this mode in the hope of providing a useful reference for promoting the application of the financial balance mechanism in urban village regeneration projects. [ABSTRACT FROM AUTHOR]