Research Of The Influence Of The Impending Popping Of The Shanghai Real Estate Bubble

In recent years, the real estate market in Shanghai has greatly developed. However, the increasing rate of the real estate price is much higher than the increasing rate of GDP and disposable income. The price has been higher than consumers can afford. As a result, the real estate price has become a hot issue of Shanghai and got the attention from both experts and Shanghai people. Has real estate market in Shanghai become over heated? If there had been bubbles, what was the degree and how would it influence the related industries and the Shanghai economy?Based on the analysis of the history and current situation of the real estate market in Shanghai, this thesis will find out what are the causes of the rapidly rising price, prove the existence of the bubble by the method of indexes, analyze coefficients of the Shanghai real estate market by the method of input-output analysis, and predict the influences of the declining price on the related industries and Shanghai economy.Shanghai economy can not develop without a healthy real estate market. We should learn a lesson from the financial crises in other countries which were caused by the popping of their real estate markets. This thesis also gives suggestions on how to control the real estate market by managing public policy. This thesis will provide the government with valuable information about a safe landing of the Shanghai real estate market.