A Study On Problems And Countermeasures Of Real Estate Industry From Sub-Prime Lending Crisis

With the rapid spread of sub-prime lending crisis throughout the world in the second half of 2008, its effect on the economy of every country is increasingly serious. All governments are involved in the wave of alleviating the negative effect on their own country by conducting some certain relief policies.The eruption of sub-prime lending crisis has given a prompt tranquilizer to the ever-prosperous domestic real estate. The price of buildings in cities has even descent by 30% to 50% within no more than one year.As the crisis has a deeper impact on the economy, the real estate in our country will inevitably confront an austere challenge. Nowadays, there are comparatively more papers on the reflection of the crisis and impacts on our country. Domestic scholars mainly analyze the cause development and the impacts on every country in the world of the crisis from financial structure and macroscopical aspects. However, fewer consider the impacts on some particular industries in our country from a different aspect. Therefore, the article makes full of Comparative analysis by analyzing some problems existing in the real estate between china and the United States, thus revealing the different impacts caused by the sub-prime lending crisis. Some policies and advice are also included in the paper aimed at making some contributions to overcome the negative impacts on real estate, improve the market competitiveness and maintain its own sustainable and steady development.Main contents: the article gives us a historical review about the development and price rising speed in real estate by statistical figures. Meanwhile, according to the development on macro-enconomy situation, the article analyzes every kind of problems in the development of the real estate from many aspects and gives some particular solutions. In addition, considering the guiding roles our country and government have played on the development of real estate, the author also give his own ideas to the future of it.Due to the limitation of data and information, the author only made some attempt aboutquantitative analysis of the real estate prices. However, he believes that this will be of great significance to have a better understanding of the cause and mechanism of action about sub-prime lending crisis as well as the profound impact on our country so as to foster the healthy and stable development of Chinese real estate.