China's Real Estate Bubble Detection And Prevention

With the reform of the housing system and the promotion of the city, real estate ofour country has developed greatly in recent years. It has a good marketing and prosperoussituation in the national real estate. However, because of the proportion of real estateinvestment is gradually enlarging, and the proportion of real estate loan balance is risingrapidly too. Particularly the general increasing of the commodity apartments' price inmany big cities, which attracted the attention of many people from all fields on whetherChina's current real estate prices are reasonable, the real estate market appears bubble ornot and so on.This paper first introduced the basic concepts of the bubble and the bubble economy,compared the differences between foam economy and the economic foam, introduced thebasic concept of the real estate bubble, its forming mechanism, general form and thedistinction with "real estate overheating".Then through the analysis on the present development situation and existencequestion of our country real estate market, did thoroughly research on internationalcommonly used methods to examine real estate bubble-"target indicate law", carried onthe real diagnosis analysis to the national data, further the understanding to the real estate,then through carrying on the case analysis to Japanese and Southeast Asia's financialcrisis initiated by the real estate bubble, fully understood the harm of real estate froth,discovered objective reason that be able to initiate the real estate bubble at present, anddiscussed the early warning mechanism to the real estate bubble, finally put forward theproposals regard how to prevent the real estate bubble and guiding our country real estateprofession health and reasonable development.