The Economic Analysis On Realty Markets Regulation In China

Currently, Chinese economy develops rapidly, and GDP grows rapidly and continuously also. In recent four years, the growth rates are higher than 10%, in which the growth of the real estate industry play an important role. In August 2003, File No.18 of State Council made a clear orientation, in which the long-disputing real estate industry is decided as the supporting industry of the national economy.With the flourishing development of the real estate, housing prices also go up directly all the way. Housing prices stay up all along, and the housing demands of the people aren't satisfied. So it brings various disputations about the bubble of the real estate. Therefore, this thesis studies the real estate market and it is separated into several aspects as follows:Firstly, this thesis analyzes the reason that the housing prices of our country stay up. There are a great number of literatures abroad analyzing it. By comparing various different viewpoint and combining the realism of the real estate market of our country, this thesis put forward that the fundamental reason, by which housing prices stay up all along, is that the real estate market is oligopoly market structure and furthermore there is a collusion in it.Secondly, using price discrimination model, this thesis made qualitative analysis about the difference of the client's social welfare between the collusion condition and competitive condition. This thesis find that, on the efficient competitive condition, the social welfare is much higher, and furthermore, the profits of developer on the condition of price-collusion are higher than that of Cournot and Stackelberg model by analyzing Cournot, Stackelberg and the price-collusion model qualitatively. And the developed quantity of the former is smaller than that of the latter. Thus, developers tend to price-collusion.Thirdly, this thesis point out that, though the adjustness and control to the real estate market never cut off, the housing prices go up all the way. Faced this, I think that we learn how to adjust, control, and manage the real estate market from the other developed zone and consequently benefit from it. This sector mostly introduces the managing mode of U.S.A., Germany, Hong Kong, Japan and South Korea.Finally, based on drawing lessons from the international managing mode of the real estate, this thesis bring forward some concrete measures about how to solve the problem that introduce the housing prices of our country go up all the way by combining the fundamental realities and current situation of the country.