A Research On Government Regulatory Policies Of Realty Price

Over the past decade, the housing prices have been increasing continually and dramatically, which has raised wide public concern. Especially after2008, the housing prices had gone up sharply to another level. The high property prices problem exists not only in major cities, but also has expanded to the emerging cities in the Midwest and central part of China. Chinese government has introduced numerous macro-control measures at all levels to enhance the control of the real estate market. However, the result was not satisfactory. Control from the government seemed to have no significant effects on reducing the real estate prices, and the prices kept increasing instead. High property prices are destroying the housing dreams of Chinese people. If the housing prices continue to grow, it would disorder the economy and even lead to social panic. The worst part is that the government is losing its public trust gradually. Although there were various proposals have been suggested from public, hoping to stop the housing prices from further increasing. Due to lack of comprehensive understanding of the real estate market, these proposals turned out to be ineffective and they were unable to establish an industry standard. Thus there are still far more in-depth researches and analysis should be put forward on this topic. After studying the government regulatory policies from1998and analyzing the effectiveness, the author focuses on the current structural imbalance of the real estate industry, overheated investment, fast rising housing prices and other issues, utilizing market economics theory and government regulation theory to analyze real estate market by SCP method on "structure-conduct-performance" frame. Base on the analyzing, we can more clearly realize the reason that these proposals turned out to be ineffective. The author gained a better understanding of existing problems and provided some suggestions on how to improve the government policy towards housing prices, such as establish a multi-level housing security system, implement the differentiated and flexible regulatory means and strengthen the performance evaluation and supervision on realty market, to achieve the purpose of effective regulation and control of real estate prices.