The Research On Endogenous Of High House Prices And Its Negative Impact On Economy Decided By China’s Government Leading Economy

The rise of house prices in our country has been always bothering the academiccircle. Many scholars study this question from different angles. But no one has probedinto the relationship between high prices and Chinese government leading economy.This paper tried to analyze high house prices from this Angle. The article reviewedthe development process of China’s housing market reform since1998years, summedup its achievement, and pointed out its shortage. By using statistical data, the articledescribed characteristics of the current house prices, market supply and demandstructure. Compared with the high house prices in United States and Japan, the articlepointed out the peculiarity of China’s house prices, and found it is the Chinesegovernment’s leading economy that gave birth to unique phenomenon of China’shouse prices rising.In detail, the GDP growth-oriented lead to excessive commercialization inhousing market while house guarantee system has not been perfected; not enough ofland marketization lead to short supply of housing distribution and real estatedevelopers’ monopoly; control of the strong financial and investment policy causedexcess liquidity and property speculation. Finally through data analysis, the articlefound that the rise of house prices produced strong negative impact on other economicsubjects, such as too high profit loss from real estate developers, capital loss of theentity economy, cost rise of other enterprises, capitalization income loss of farmers’land and inflation.