The Comparative Analysis Of Real Estate Bubble Between China And Japan

In the 1980s the outbreak in the real estate market in Japan as a representative of the economic bubble caused serious influence in his domestic economy. It lasted a long time and caused great harm, still letting people feeling scary, what is more, it also made Japan's economic rapidly declining in the 1990s, caused the Japan's "lost decade".Similarly, in recent years China's the real estate market continuous rise considerably, especially since 2007. Our real estate price rising dramatically for a long time, beyond the average resident purchasing power. Especially in some big cities, the house has been for an unreachable dream, thus whether the real estate market appears bubble become focus which the scholars debate both at home and abroad.This paper bases on the theory of comparative analysis in the real estate market between the two countries. First of all, the paper summarizes the theory related economic bubble and real estate market, letting people have a macro understanding and grasping in the real estate bubble; Then, through describing the whole real estate market's development and its present condition as the index, leading that China has similar economic, social and cultural background to Japan at the explosive growth in real estate market. when we find that real estate industry itself has many similarities, we also find that it also has a very different from theory in China's real estate in macroeconomic situation, social development level, real estate development trend and scale, etc. It may not continue forward the trajectory of Japanese real estate bubble; Then, we use factor analysis method, basing on the selection of a lot of real data, measuring the trajectory of the real estate development between the two countries and bubble degree at different levels, computing two different countries'bubble degrees. Based on this analysis, it is concluded that China's real estate bubbles don't burst and erupt similar with Japan's real estate bubbles; finally, through China's real estate industry policy reviewing, we puts forward related policy to prevent real estate bubble from expanding, keeping the development of the real estate market on healthy and stable in China.Through chart, data on the real estate market between the two countries, this article are making a comprehensive analysis and comparison of objective, which are based on the factor analysis. Real estate bubble of relations between the two countries was measured as far as possible to avoid the man-made factors, the influence of the results of analysis results look. From the analysis results showing, it can reflect the present situation, the bubble degree, and the problems we faced objectively, so we also put forward policy conveniently.