Generation And Influence Of Real Estate Inflation Comparation Of China And Japan

The real estate is an important pillar to the economy of a country. It plays animportant role in the economy development. But it lead to a real estate bubble becauseof the scarcity of land supply, the virtual value of the real estate, the market monopolyas well as the financial market is not perfect, the information asymmetry, thegovernment dereliction of duty and many other reasons. The real estate bubbleoccurred in Japan in the1980s. The Japanese real estate bubble collapsed, Japan’seconomy declined, living standards dropped, a large number of enterprisesbankcrupcied, unemployment rate increased, consumption and production declined, Itseriously affected the normal operation of the Japanese economy, in the next10yearsin Japan, the pace of the economic development was slowly, known as the “ten lostyears”.Since China joined the world trade organization, the speed of the economicdevelopment is faster, the level of the financial market openness is improving, in thiscontext, the speed of the real estate market development is rapidly, at the same time itis stimulating the further development of China’s economy. In2011China’s real estateinvestment is61740one hundred million Yuan. It increased27.9%than2010and farhigher than the9.2%of the GDP growth. At present, house price is raising too fast inmany Chinese city, much higher than ordinary residential price affordability. Thehousing demand cannot be effectively solved. With house prices is raising year byyear, the research on China’s real estate bubble is very important.The purpose of this paper is to analyze the real estate bubble degree in Japan andChina by comparatively analysis the background, system and the same factors anddifferent factors caused the bubble in the real estate market in two countries with themethod of the “Effect Function”. The Conclusion is that China’s real estate marketdoes have a bubble. At the same time, according to the Japanese real estate bubblelesson, four proposal is offered to promote China’s real estate market developmenthealthily.