Research On Formation Mechanisms Of China Real Estate Market Irrational Exuberence And Its Management Process

Real estate industry is the basis of the national economy,the leading industry and the pillar industry. Real estate products not only offered the means of subsistence, but also the means of production.Real estate brings basic space for peoples'life and economic activities.Also it is one of the most important invest choice of people.The development of real estate industry can stimulate the development of many other industries.So the real estate industry has played a very important role in national economy.By the support of government policies,the real estate market has developed greatly in recent years.The price of real estate keeps increasing and the topic of real estate bubble appears on the medias.But because the bubble does not have a clear definition and its testing methods have many questions,many people have doubt of the conclusion of real estate bubble.To discribe the current real estate market clearly,we bring up"real estate market irrational exuberence"instead of"real estate bubble".The real estate market irrational exuberence is the phenomena that the real eatate price keeps increasing which is out of fundatmental worth but decided by peoples'belief.Because the real estate both has the properties of physical product and virtual product,the worth of the real estate has two criteria.But the empirical study shows that the current real estate price is beyond its worth.The reslut shows our definition about the real estate market is according with the fact.The second and the third chapter mainly analyses how the outside impulse causes the real estate market irrational exuberence.Thinking of the characters of the transformation economy,we choose government behavior as the most important outside impulse of the real estate market. The function of market participants will make the real estate price much higher than the result of basic market elements singlely function.Since the real estate market irrational exuberence causes many risks,we must take some actions to guard against it.Based on the analysis of the formation mechanisms of the real estate market irrational exuberence,we put up some proposals.