Institutional Economics Analysis Of Chinese Real Estate Market On Prices

With the development of economic and social progress in China, urban areahousing price has been gradually rising in recent years. Meanwhile, real estate pricein some big cities is too high to be reached. In view of these phenomena, the authorconsulted a lot of relevant information from domestic and aboard, and found manyscholars had had a profound research on real estate market and that many complexfields were actually related and their practical research on the basis of case analysisand control experiments, their research methods are also rigorous. However, theseresearches have a common characteristic that these studies see high prices as anexisting or quite common phenomenon, and always employ the situation that themajority of people in developed capitalist countries still cannot afford to buy realestate as foil and basis of China’s high house prices. On this basis, the soaring pricesdue simply to the real estate market is not standardized, land strokes shoot to itsnegative effects and local government " land finance " and other reasons.In this paper, the author focuses on some existing problems in the current stageof China’s real estate market and hidden reasons for the soaring prices. On the basisof the results of these researches, the author will give a comprehensive analysis andintegration of many kinds of reasons and systematic defects. This paper will notsimply analyze the supply and demand, because the regulatory complexity of realestate field and macroeconomic policy, constant volatility make the real estate priceperiodicly rise and fall in long-term. In this case, any policy may influence both ofsupply and demand of the real estate market, so as to push up prices or to weaken theeffect. On the basis of understanding of the reasons mentioned above, this paper will focus on the land property right system reform, financial reform tax system and theestablishment of the real estate market in the new government relations. It provides anew solution of the problem so as to broaden the theoretical perspective and researchmethod of the real estate marketThe core content of this research paper is divided into seven parts:The first part is the introduction, including the proposed question, the relevantissues, the concepts,and the arrangement of the thesis content.The second part is the theoretical basis related in this paper. Including thetheory of Karl Marx economics on the real estate market prices, the theory ofwestern economy, institutional economics theory, and the relationship betweencentral and local governments and other basic theories.The third part: the structure and function of land system in China, whichmainly includes the encouragement and restraint of land property right system,system of land removal led to the rise of trading cost, and the land reserve system inChina causing the monopoly of land market and bidding system lead to premiumvirtually higher economic phenomenon one analysis. At last, integrate all thecontents mentioned above into an organic whole, which shows significance in theentire real estate market.The fourth part is the analysis on the reasons of Chinese city real estate prices,which including the mechanism of formation and housing price, structural imbalancein the property market, real estate market information asymmetry, transaction costand tax cost structure etc. The author will separate the transaction cost andtransaction cost of real estate market into consideration. As the most direct and boostprices, structural and institutional real estate market itself as " not ". At the same time,this paper will also focus on the finance and tax policy, the content in the conflicttogether, in-depth analysis of the government, and the behavior evidence ofdevelopers and consumers. The fifth part is the analysis about the endogenous equilibrium prices of China’sreal estate market prices. From the angle of the system economics, endogenousequilibrium implies to the of the results of the current system conflict. Change thepresent status, the cost of institutional change will be greater than the income ofinstitutional change, so as to achieve a balanced state. At present, the equilibrium ofChina’s real estate market means, the government, developers and banks have eachtakes what each of them need. In the interests of the chain, be too strong to broken.Therefore，the current real estate market belongs to a low efficient equilibrium.The sixth part is the macro-control system of foreign real estate market analysisand reference, introduction of macro-control,, including Germany, the UnitedStates,Japan, Singapore and other countries of the real estate market system, Themacro-control system analysis of China’s real estate market is the importantinfluence and reference system and innovation.These seventh part is about founding the new government relationships. Thischapter mainly discusses how to establish a new type of government relationshipswhich has a reasonable regulations. Under the current economic situation, howshould we see the decreasing effect when central regulation policy is conveyed to theevery diversity， and some relevant reform measures. This paper also deeply andwidely analyses the systemic reasons this problem aroused. It, at the same time, setabout exploring the standing point which can not only help the central governmentdeeply and truly understand the real estate regulation, but also limit the localgovernment policy-choosing. Meanwhile, it can enable the government to giveplay to reasonable regulatory functions.