An Economic Analysis Of The Real Estate Market Bubble And Management Measures

Real estate industry belongs to the basic and superior industry and now it is a dominant position. Due to its advantage of strong relevance with other industries it has been the main industry.With the transform from planned economy system to market economy system after reformation and open real estate industry has changed largely from distributing houses freely in 1980s to selling houses after 1998, the consumers' notion has been changed thoroughly. Real estate industry has brought along the society aggregate demand. Now real estate industry is in the third climax of development.However more and more foam is emerging in the development of real estate industry. In so circumstance this article is based the data of the late two or three years, and illustrates the present conditions of real estate industry including large amount of foam and reasons why this condition appear and puts forward to some proposes and methods.The author believes that the foam has appeared in some parts of that even though hasn' t appeared in the whole industry. Unless this condition is adjusted in time, the whole industry will produce more problems and influence further the healthy development of whole economy.Firstly this article begins with the simple introduction of real estate industry. Secondly this article analyses emphatically from three parts. The first part analyses the reasons of high house price and put forward to the standard of reasonable price. The second part analyses the conception of the rate of empty and compare the domestic and internationalconcept of the rate of empty, in the same time , the part gives some suggestions how to modify the formula of the rate of empty to be suitable our conditions. The third part discusses the reasons of the excessive investment in real estate industry. In the end, the article gives some suggestions to above three parts. These suggestions include how to lower the price of real estate and how to adjust the structure of real estate open and decrease the rate of empty and how to guide the reasonable investment and guide against risk of financial.