The complexity of property rights embedded in the rural-to-urban resettlement of China: A case of Hangzhou

China’s dual land ownership structure creates distinctive land markets in rural and urban areas, and the issue of ambiguous property rights systems is theoretically regarded as a rural issue. In recent years, rural-to-urban resettlement has become a potent tool of the government in promoting urbanization and addressing the ambiguity issue. Yet, resettlement projects may deviate from the presupposed ideal path of achieving equitable property rights through property rights rearrangements. This research aims to unpack the complexity of property rights embedded in rural-to-urban resettlement based on the empirical case of Hangzhou. Based on documentary analysis, field observation, in-depth interviews, and questionnaire surveys, this research argues that the ambiguity issue cannot be fully addressed through rural-to-urban transition, and the concomitant complexity issue is inevitable in urban areas without targeted policy remedies. The findings identify some main obstacles to the ideal transition of property rights systems. First, the resettled villagers are excluded from market participation by inadequate compensation through planning mechanisms. Second, resettlement communities suffer from the remaining rurality that challenges the enforcement of formal institutions and the governance of communal resources in the urban system. Third, the collective-retained land is an innovative but compromised institution devised by the local government to achieve a fair property rights rearrangement through resettlement, but its effectiveness is weakened by the politics at the village level. These findings have important policy implications for achieving equitable property rights in the context of China’s heightened attention to sustainable urban-rural development. • Rural-to-urban resettlement is a planning tool to address the ambiguity issue of property rights. • The complexity of property rights should be interpreted based on a two-dimensional construct. • The persistent rurality challenges formal regulations and communal resources governance in resettlement communities. • The collective-retained land is an innovative but compromised institution to achieve equitable property rights. • The current property rights systems need planning and policy intervention.