An Analysis Of Consumers' Welfare Of The House With Limited Property Right In China

Currently when the general public decides to buy houses, they are confronted with two options: commercial houses and property limited houses. This phenomenon is gaining increasing controversy from the general public as well as scholars. This article aims to discus the welfare of consumers of the house with limited property right. As far as the author's knowledge of this area, the author engaged himself in whether the welfare of property limited house consumers is being damaged or not. Scholars, however, pay more attention to the protection of the ownership of property limited house as well as the policy risk of the option. Little attention is paid to the welfare of consumers of property limited house. Thus with reference to some documents domestically and abroad and summarizing the perspectives of net friends on this topic, the author draws on the fundamental theory of western economics and welfare economics, to discusses the welfare of consumers of the house with limited property right, attempt to provide some theoretical evidence for our residents on the option of purchasing houses.Firstly, the article analyzes the root of the birth of limited property house in China in the aspects of society and economy respectively. Considering that the generation and demand of limited property house is the result of China's special land system of urban and rural areas then a number of questions appeared. What are the factors urging residents to choose limited l property house, who are the main group purchasing the house with limited property right? According to the article's analysis, it is people with low income that choose to purchase the limited property house, under their low income budget. In accordance with the role of our government in the house market, although in comparison with the case in planned economy stage, people have more option rights and the condition of a number of citizens is improved in some degree. There are still some problems that need to be addressed under current condition of China. For instance, as the limited property house consumer, the low income group, what on earth is their welfare? This thesis investigates the welfare of property limited house consumers, by discussing the consumers'surplus.This paper attempts to achieve the following innovations: Firstly, break the theoretical analysis blankness of the consumers'welfare of the house with limited property right; Secondly, considering the actual payment that is different from the price by introducing rental costs, consumer buy limited property house at a much lower price in nature; Thirdly, as limited property house consumers pay less than normal, conclusions can be made that the option of limited property house consumer is not unwise. It is impossible to persuade them to give up purchasing the house with limited property right, measures should be taken to turn our real estate market into a fully competitive one, where a sound and rational house price could appear. In addition, allowance should be provided for low income group under the arrangement of existing double-land system to improve the social welfare.