Government Regulations On Containing "Primesite" Phenomenon

As the real estate industry develops with a rapid pace in recent years, the"Primesite Phenomenon"is becoming more frequent, where housing prices are being pushed up by a whopping land price."Primesite Phenomenon"is a market behavior determined by land resource scarcity and the competitiveness of real estate market. While this phenomenon has certainly improves the efficiency of land use, it has also brought with it some side effects. This has already become a critical issue for our government. Whether we can efficiently control this phenomenon is going to affect the healthy growth of our real estate market, our civil engineering development and the coordinated growth of our socio-economy.This essay is divided into 5 main parts. In the 1st part, there will be a brief description of Primesite Phenomenon and its origin.It stated that the dysfunction of land market operations and a dysfunction of our government are the essential factors of Primesite Phenomenon. Its root cause contains both certain market factors and a false government intervention. However the main reason for its existence is the irrational marketing positioning of our local government. The government is acting as both land market maker, and market administrator at the same time. Government therefore has the ability and the authority to monopolize land and earn huge profit/income, whereas the profit/income was never returned to society for the much-in-need civil engineering.The 2nd part analyzes the impact of Primesite Phenomenon. Although it has its positive contributions, it has also a great many negative impacts. It has badly influenced the healthy growth of our real estate market and is setting obstacles to the operation of our macroeconomics. It is also an unfair practice that contradicts our belief in a harmonious society. Primesite Phenomenon has raised serious concerns for our government to have reconsiderations on the macroscopic control of the real estate market.Based on references in part 1 and 2, part 3 is proposing the need to contain Primesite Phenomenon as our government's first priority.Part 4 is an analysis of government policy on containing Primesite Phenomenon. Four aspects are being examined here: the draft of land supply plan, the guarantee of land supplies, the implementation of land use supervision and the punishing regulations on illegal land use. The essay then proceeded further to analyze the increase in land supplies and real estate price, the increase in land grant fees and the varying cases of illegal land use. Thus to elaborate on the reasons for ineffective government regulations.Part 5 is to further suggest on how government can gain more control on dealing with this phenomenon.From system innovation and restructuring, coordinative interest integration for different parties, to fiscal and taxation reform and government supervision, with a hope to contribute in some references.