Theoretical And Empirical Analysis Of China's Real Estate Bubble

Property bubble is a phenomenon that occurs in a country, which has insufficient lands to the people. It will bring serious result to economic and society if it occurs. As our country's real estate industry is in the stage of rapid development, property bubble has attracted more attention than ever.In order to find out underlying factors which will induced property bubble and present the precautionary advice and countermeasure, the paper analyzes the station of the real estate in 1997-2001 by using the up-to-date statistic status and employing the qualitative and quantitative analysis methods.There are four parts in the paper.Firstly, property bubble is defined.Secondly, the typical characters and factors of property bubble are analyzed in Hai-nan Province and Guang-xi province.Thirdly, the running station of our country's real estate industry 1997-2001 is studied. Though this study a judgment is made to show whether the bubble property is occurred. At the same time, the paper finds out the underlying factors that could induce bubble.Finally, the paper remarks on the government policy about the property bubble and presents precautionary advices.Through the research above, we can have the conclusion that there was not all-round property bubble in our country in 1997-2001. But some potential factors are emphasized. At last, the paper gives some suggestions that can control the factors not to become true.