Research On The Healthy Development Of Real Estate Market In Banan District Of Chongqing

With the fast development of social economy, the real estate industry in China shows the fast development trend, and has maintained fast growth in many consecutive years. Healthy development of real estate, as the foundational and leading industry in the whole national economy system, can greatly push the whole economy forward. Therefore, clarifying the contribution of the real estate industry to the national economy and developing researches of the real estate market bubblee has important theoretical and practical significance on promoting benign development of the real estate industry, reducing financial risks and guaranteeing the healthy socioeconomic development in China.The paper selects Chongqing Banan District as the research area, and researches the influence of real estate development in this district on the national economy, real estate bubble and its degree, and macroeconomic regulation and control of real estate.This paper first starts with related industrial theories, and researches the contribution of the real estate industry in Banan District to and its leading effect on the national economy growth using the growth value method and growth leading rate method. The research findings show that the contribution rate of real estate industry to the national economy in Banan District was 4.50% in 2001-2010, which was as high as 8.70% in 2008, indicating that the real estate industry has important influence on the national economic development in Banan District, and has become the pillar industry of the economy in Banan District, so the healthy development of the real estate industry is related to the continuous and stable development of social economy in this district.Next, this paper researches the real estate bubble conditions in Banan District using the econometric model, housing price to income ratio and price-to-rent ratio from the existence and specific degree of real estate bubble, and compares the real estate operation status in different places of this district. The research findings indicate that the reasonable housing price to income ratio is R=4.48, and reasonable housing price-to-rent ratio is R/P=1/220; while the actual housing price to income ratio was R=6.69, and the actual housing price-to-rent ratio was R/P=1/370 in Banan District in 2010, showing that in recent years, the real estate market is excessively prosperous in Banan District, and the real estate price has showed the tendency of separating from the growth of basic market value.Finally, this paper starts with the importance and necessity of macroeconomic regulation and control, and proposes the following countermeasures for inhibiting the real estate bubble in view of the present development status of the real estate industry:1) Establish a perfect financial supervisory system and an independent financial supervision system; 2) Speed up the construction of housing security system; 3) Scientifically formulate the land supply quantity, price and time; 4) Implement real estate tax reform; 5) Further standardize the real estate market.