The Development And Analysis Of China’s Real Estate Policies(1998-2012)

Since the Implementation of China’s real estate reform, real estate market has gone through the process of formation and development and real estate has become the important economic sector. During those years, depending on different economic backgrounds the real estate policies changed and adjusted a lot. This paper will analyze the content and evolution of the real estate policy.The first part of this article introduces the relevant literature, including writings of Yang Jirui edited and Fan Guangyin, Ba Shusong, Xu Jiang and others.The second part of this article discusses the policy background, policy content, policy features and policy implications of the real estate policy, and the real estate policy is divided into the following four periods:The first period:real estate development policy period (1998-2003).In the Southeast Asian financial crisis and domestic political and economic context, the Government retreat real estate industry as an important economic development industry, and actively support the development of real estate.The second period:controlling real estate prices policy period (2003-2008). Due to the excessive growth of real estate prices, the central government adopted policies controlling real estate prices, active use of economic instruments to stabilize the economy and prevent the real estate bubble.The third period:stimulating real estate period (2008-2009). Under the risk of the global economic crisis, central government adopted a looser fiscal policy and monetary policy, as well as a series of economic stimulus plan during this period.The fourth period:stricily controlling period (2009-2012). Since the last period of series of stimulus policies resulting in rising real estate prices, the central government makes use of administrative and economic instruments to adopt stricter controlling policies.The third part is theoretical analysis of the evolution of real estate control policies. Firstly, this paper introduces theory of institutional change, the first North, Ratan and Yang Ruilong’s theory, then introduces the theory of institutional change in perspective of Game Theory. Secondly, this paper establishes a simple game model, and game participants are central government, local government and enterprise. The central government’s strategy is to encourage or not to encovirage development of real estate, local government strategy is positive execution and negative execution strategy, corporate strategy is to invest or not to invest. Next, this paper analyzes the four periods of policies making use of this simple model.The fourth part is to forecast future policy direction of real estate, and make a number of policy...