On The System Of Chinese Real Estate Bubble And Controlling Measures

With Chinese economy developing sustained rapid, Chinese society is changing from food and clothing into a well-off model. Housing consumption has become a new economic growth point. Real estate industry has become Chinese current leading industries.After entering the 21st century, Chinese real estate industry has entered a high development period. But with the rapid developing of real estate industry, housing prices have being increasing in high-speed. Real estate price bubble is gradually emerging. The High housing price made the majority of urban residents can not buy a residence. It also impedes the establishment of a harmonious society. The rapid accumulation of real estate bubbles is a potential risk of Chinese economy.Since 2004, Chinese real estate bubbles become more and more obvious. Society concerns of the growing real estate price bubbles. The state began promulgate a series of macro-control policies in order to control the excessive growth of real estate bubbles, but the result is not evident. What are the causes of Chinese real estate bubbles? Why the series of macro-control policies have not been effective? What measures can we take in the future?This paper introduces the manifestations of real estate bubble and its danger, describes the appearance of Chinese real estate bubbles, Demonstrates the special natures of the real estate supply curve and Demand curve, proves the law of real estate bubble in theory, relating with Chinese current political, economic and cultural characteristics, analyzes formatting system of Chinese real estate bubbles, and then bring up the controlling measures of Chinese real estate bubbles.The views of this article is that the causes of Chinese current real estate bubbles stems from imbalance of supply and demand, and the causes of supply ,and demand imbalance stems from the Lack of land market elements, market monopoly, effective supply shortage, rigid demand, market speculation, and also from Chinese current political, economic and cultural characteristics. Therefore only using diverse measures at one time, real estate macro-control could be effective.The innovation of this paper is that it verifies the reasonable that Consumers buying when prices increasing up and not buying when prices falling, real estate developers not selling when prices increasing with Price increasing expecting, discovers the particularity that Real estate supply curve Backward-bending in a specific time sequence, demonstrates the real estate bubble formatting theory. It is a Notable feature that amylases real estate bubbles with the characteristics of Chinese politics, economy and cultures, and then bring up the measures to control Chinese real estate bubbles.