A Research Of The Real Estate Maket Defects And Government Intervention

As the basic and leading industry of Chinese national economy, real estate industry can affect the development of forward or backward related industries through industry links and transfer. If the real estate industry could maintain a rational developing rate, it will contribute to a steadily increasing economy. In the other hand,Because of the special properties of real estate industry such as immovability and fictitious value, etc, and china' s specific arrangement in land property system, our national real estate industry presents the existing double market defects i.e. market mechanism malfunction and market system failuer. Those two defects therefore will bring about certain harm and loss to the economic development, and can even cause more serious consequences.This thesis was written by taking the general market malfunction theory , public choice theory and real estate industry economics both here and abroad as the guide , and also combining with some specific properties which are existing in the real estate industry. The thesis has deeply, meticulously analyzed and discussed about the causes and consequences of our national real estate market mechanism malfunction and systemic defects. The thesis points out that the realty industry has some market malfunction phenomenon such as monopolization, asymmetric information, irrational speculation, cannot providing public residence and external property. At the same time, under the arrangement of our national specific land property system, the present imperfect law system and administrative setups.etc, can cause the government-the special market principle part to deviate from social public interests and needs, it also leads to some market systemic defects in the real estate market, for example, insufficient supply of land or overdue supply, land costs and land supply prices cannot following the market mechanism, and market can self adjust through price information.Furthermore, the thesis indicates that indifferent combinations of the above market mechanism malfunction and market systemic defects, which will initiate different market consequences such as house price rises too fast, the high vacancy rateand the high house price coexists, the contradictory structure of real estate market and the real estate froth appears,etc.Aiming at these consequences, the thesis proposes intervention measures which could be taken by the government accordingly. Meanwhile, by taking the wenzhou urban district as a application example and using the above real estate market defects as a research frame, the essay analyzes some phenomenon displayed by the wenzhou urban district 's real estate market defects and the current government intervention measures. It points out the existing problems and proposes the according countermeasure and suggestions to renovate and perfect Wenzhou government's function localization and intervene the real estate market more effectively.