The Research On The Foramtion Mechanism, Influences And Counter-measures Of The Overheat In Chinese Real-estate Market

In the past sixty years after the foundation of the People's Republic of China, the development of China's real-estate industry undertook a flexuous development course. Before the implement of the Reform and Opening-up Policy, housing was defined as a kind of welfare product that reverted to the country; therefore, housing didn't have commodity function at that time. The old real-estate system, which was not in accordance with the market laws, placed heavy burdens on the country and enterprises. Shortage of investment was far from sufficient to satisfy the meets of nationality life. After the implement of ROP, the commodity function of real-estate was enhanced. The exchange of houses began to take place in the market. Since then real-estate transaction presents a fast grow tendency, has enjoyed a huge potential for developments, and has become one of the pillar industries in the country.Because the development of mercantile residences started late and the surrounding social and market environment was still being built, many problems of the real-estate market were revealed. From the year of 2003, the overheat phenomenon of the real-estate market came out and the abuse of the market exposed. From the view of economy, the overheat situation of real-estate market is defined as a non-stationary rising caused by the separation of market value and basic value in buildings and lands. While in the nature, the problems in real-estate are both social political and economic. The Chinese government adopted a series of measures to curb the rise in house prices and speculations in the property market. However, the result was contrary to the government's expectation which meant that the measures of the government adapt to control the real-estate economy is out of use.Transformation is not as special as a customary practice for the government. Chinese government should separate clearly the housing problems to the real-estate economy to promote the healthy development of the entire national economy and social security. There are many problems in the policies of land supply, market supervision and housing finance which defect of roles and functions of the government, especially in the development of the lower rent housing and affordable housing. The interests of public are blurred or even been forgotten.Real-estate is referred to the property abroad, which specially defined as a service industry related to the real-estate, including the evaluation of house prices, house leases, house exchanges, agency and property management services etc. while the commercial real-estate and housing developments are included into the building industry. Therefore, the housing policy is a part of social policies, such as social welfares and reliefs which indicate government functions of housing security and social justice. The real-estate policy belongs to the economic policy indicating market efficiency. Even during the rapid Industrial process, the Western countries have never adopted this buy-orientated policy as China.It is no doubt that housing is a basic living need of human. Though there is still no nation all over the world have successfully resolved the housing problems perfectly, the abnormal overheat situation in real-estate sector of China's economy is worthy of our deepen study. Looking closely in the reality, we can find out that there are still a great many of problems existing in the recognition, regulation and operation process of the overheating real-estate market. Chinese real-estate economy means a lot of things. Housing condition is one of the most important factors affects the standard of living condition of Chinese people, and it also has been a part of content in building a well-off society. People's feeling of discontent in the rocket raise of the housing price could easily trigger a series of social contradictions, problems, and even conflicts, which had proved harmful to build a service-oriented Communist government, to further intensify the legitimacy of the government.Faced with this background, the thesis starts with a study of the mechanism of Chinese overheating property market formation from different aspects, analyzes the new situation of the real-estate market and discusses the existing problems, effects and causes. Based on the experience and lessons of governance in real-estate industry from Japan, Singapore and Irish, the thesis finally proposes several suggestions.The innovative points and contributions of this thesis are as follow:Firstly, this thesis illuminates the formation mechanism of Chinese overheating real-estate market from its particularities and the practical situation of China.Secondly, under the background of the economic globalization, the thesis analyzes the financial status of china's overheating real-estate market, focuses on the importance and urgency on controlling the overheating real-estate market so as to prevent the potential financial crisis.Thirdly, the thesis studies the experience and lessons of governance in real-estate industry in Japan, Singapore and Irish from the angles of economic and public policies, and the thesis provides a practical and effective reference to the study of china's real-estate market.Finally, the thesis integrates theory with practice that means puts forward the foremost path to solve the overheating problem of china's real-estate is to separate the housing security with real-estate economy to promote the healthy development of the national economy from the angles of economy and social security.