Real Estate Bubble And Government Regulation And Control Policy

Real estate industry relates not only to the development of the national economy and the interests of the people, but also to financial well-being, if the real estate has bubble which will likely have a negative impact on the economy, severe cases may even lead to the financial crisis.First, we use the method of data analysis on the following parts:the relation between real estate and national economy, investment in real estate development, real estate financing, sales of commercial housing price changes, size changes and the real estate business areas such as income, and we present the current situation of real estate in China, note the drawbacks of China’s real estate market. Then, make an analysis and summary on what caused the housing bubble, firstly analyzed the relationship between local government and Central Government’s interest in the real estate industry, mostly from government finance and taxation, administrative charges, and real estate-related industries in China real estate income and the taxation out of the related industries’ revenue, totally five areas. After that, make a comprehensive analysis the side effects of the real estate bubble, pointed out that the real estate bubble seriously aggravates social tension, discouraging consumption, the sole development of deformities, causes the entity property capital flows into real estate industry profiteering, leading to imbalances in China’s economic structure.To curb price increase, Government introduces relevant public policies, so we have studied public policy tool for China’s housing market, including financial support policy, rent (price) control policies, planning control of land policy, monetary policy, taxation policy, trading restriction policies, property under construction of public housing policies, housing policy, housing trade control policy, and foreign capital control policy, totally ten types of policy instruments. Carding period2001-2011"Guozihao" policies, analyzing the effects of various policy instruments for intervention in the housing market. Take Shanghai for example, macro-policy analysis at the national level on the development of Shanghai’s real estate industry impact and make a description of macro-policies on housing and land use system reform is a precondition for the development of real estate industry in Shanghai, and then listed the1990-2007period real estate tightening policies introduced by the Shanghai Municipal Government, explored the local effects of real estate policy on real estate prices in Shanghai. National and local policies for the real estate industry in Shanghai, Shanghai attracted supply-oriented real estate market boom. Real estate transaction is active in this period, investment demand is strong, real estate appreciation potential rising, formed a potential housing bubble.Last, we make some policy recommends and proposals on how to control and crackdown real estate foam, including perfect land property system, and break land development monopoly, and rein administrative charges, cuts government related interests, enhancing market manipulation and fraud regulatory, strengthening financial monitoring, ensure financial security, increase supply, improve supply and demand relationship, inhibit investment type needs, multiple channels guarantees for personal living type needs. All the suggestions can be usedand referedas future Government regulation optimization and macro-control policy making.