| Real estate industry has been considerable development in China in these years, it became to one of the leading industries of the national economy. Residents'living condition, development of cities and appearance of cities have been changing rapidly. However the price of real estate has started to skyrock since 2001. It began to rise faster especially since second half of 2003. Suddenly the high price of real estate become to a focus of the public. This paper analyzes the influence of the high price of real estate on real estate industry, national economy and people's life by analyzing the statistical data. And then raise the specific countermeasures and suggestions. The paper is divided into six parts.Part one, the theory of real estate and the price of real estate.Real estate is defined as land and things set in the ground and things underground linked to using on the ground, also including the rights brought by these components. Compared to ordinary commodities, real estate possesses natural attribute, economic attribute, legal attribute and social attribute. So the real estate market is different from other general market, it shows:①It is a regional market.②There is no matter flowing in this market.③It is a high transaction costs and Imperfect Competitive Market.④The adjusting of supply lag.⑤The transaction is complex.⑥It very depend on financial industry.⑦It is liable to government intervention.Real estate prices also have their own characteristics:①It can't be equilibrated by moving.②Real estate price and land-value are not only indivisible but also competitive.③It is rigid.④It raises spirally.⑤Most of price formation and transaction information are non-public.Real Estate Price can be divided into theoretics price and market price. According to the Marxism Economic Theory, theoretics price is a kind of calculating price according to value or its transforming form. Market price is the price that formed in trade, consisting of product cost, circulate cost, tax and profit.Part two, fluctuating of real estate price in China in these years.Real estate prices are rising rapidly these years. It increased by 17.76% and 14.04% in 2004, 2005. Considering the condition between cities, they are very different. Just few of them grew slowly, most of the increasing rate is double-digit, some are up to 30%. The current high price of real estate in China has gone far beyond what ordinary residents can afford: Residents in Beijing have to spend all of their 23 years of personal disposable income to buy a house, residents in Shanghai need 15 years', residents in Tianjin need 13 years', residents in Shenyang need 12 years', even in Chongqing where real estate price is relative lower it also spends all 8 years of all income. Using"housing painful index"to compare to cities'real estate price in developed countries, the price is much higher in China.Part three, study on the influence of high price of real estate on real estate industry.The most direct influence of high price is on real estate industry:①It brings real estate industry into an excessive development period: company profit is increasing very year, the personnel numbers of these enterprises are much higher than before, the capital asserts investment is rising rapidly.② Excessive development may lead to resource wasting.③Most of small companies operates inefficiency will causes some potential business and financial risk.④Over high price of real estate may damage the market competition order.Part four, study on the influence of high price of real estate on national economic.Rapid development in real estate industry in China has stimulated the increasing of GDP and governments revenue. In addition, the prosperity of real estate industry has promoted city economy development and the concentration utility, and it is also an important driving force to upgrading of industrial structure. However the housing prices are too high to common residents. It causes many negative impacts on national economy:①It strengthens real estate's investment attribute, increasing speculative demand.②It causes potential financial risk.③It rises associated elements prices and inflation pressure.④It increases the cost of city construction and others cost.⑤It hampers cities competitive ability enhancement.⑥It widen the gap of cities'development level.⑦It attracts much foreign capital to the market.Part five, study on the influence on residents'life.House purchasing improved the residents'living environment, but current price is too high to residents. It will bring many negative effects to people's life:①It aggravates unfairness social distribution between people. More wealth transferred from the poor to the rich and the merchant, so the gap of income distribution is becoming wider.②It reduces the quality of residents'life and increases people's living pressure.③"Crowding out"is more obvious.④Residents'buying expectation is confused by the high price, they can not have the rational expectation.Part six, give the solutions and suggestions to high price of real estate.Based on the analysis above, this paper gives solutions and suggestions to high price of real estate by administrative method, economic method and legal method.Because China is a socialism country, government must protect the basic interests of common residents, meanwhile ensure the increasing of national economy. Therefore, we should control the speed of real estate industry development fits to the speed of national economy growth, the price of real estate fits to the level which ordinary residents could afford, in order to make sure the real estate industry grows stably and fast. So it can be used to promote the economic increase, to improve the quality of people's life and help to build the goal of the harmonious socialist society. |
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