A Study On The New Residential Buildings' Price Rigidity Of Major Cities In China

The study on new residential buildings' price rigidity of major cities shows that the essential reason resulted in price rigidity is that our urban real estate market is an oligopolistic market. Several real estate development enterprises obtain and maintain a monopoly of the region market through occupancy of the most land. Moreover, the oligopolistic market is characterized by administrative. The annual discretionary income of the city residents is quite unfair, which enables those oligopolistic enterprises to charge with higher price. At the same time, the local governmental interests rigidities promote the oligopolies price cahoots.So to resolve the problem of price rigidity, the related administration should introduce more competitive mechanism, break down the local governmental administrative monopolization and interests rigidities, reduce the conditions of monopolization, implementer more strict, uniform and effective land-rented systems in land market and more equitable income-distributed system.