A Study on Chinese Real Estate Market - The Problems and Its Countermeasures

With the fast development of the Chinese economy and its urbanization, the real estate industry has been one of the most important and energetic industries to push up the economic scale in China. However during the process of development, there has been an excessive rise in real estate price and it has caused many economic and social problems. This paper examined the reasons why Chinese real estate market had soaring rise and also discussed the future development of Chinese housing property industry and meanwhile, this paper proposed some possible solutions to help China cool the real estate market and eventually to devoted to the healthy development of Chinese economy. This paper also discussed the relationship between developing real estate industry and national economic growth based on the case study in Japan and Korea. This paper found that due to Chinese governmental lax supervision on finance, due to Chinese governmental monopoly policy on land, due to the speculation on the real estate market and the fact of Chinese traditional concept of house ownership meanwhile, this paper found that the further reasons including house as the vale-added investment, urbanization, income rise and ect.; all of these factors devoted to the excessive rise in house price in Chinese real estate market. Based on the factors, this paper proposed that strengthening governmental supervision, levying property tax, repressing speculation and increasing the construction of low-rent house and affordable housefor public be possible ways to stable the real estate market and devote to the healthy development of Chinese economy.