Research On Legal Regulation Of China’s Real Estate Market Research

The issue of real estate is intimately linked to the life of every individual, as well as thelong-term stability of a country’s economic and social development. Having undergoneseveral major reforms, China’s real estate market has put some positive significance to bothsoc-economic progression and household advancement. However, as a result of theimmaturity of real estate reformation, the incomprehension of legal mechanism, the hysteresisof corresponding rules and regulations, the market price of properties is beyond theaffordability of the majority, distorting the real estate market. Though lots of authoritativeefforts have been putting into this respect, the fruition is far less than significant. To solve theproblem, an in-depth analysis has been conducted in this article by employing economic lawfrom the perspective of the interests of the Groups.Delving into China’s real estate market, I believe that four interest groups—the realestate developers, the local authorities, the commercial banks, the consumers—are existing incurrent real estate market. Besides, the central government also acts as a powerful regulatorpersisting in market. The discrepances between different subjects regarding causes,approaches, effects of the influences they have on the real estate market respectively due tothe differing market statuses, has resulted in the confrontation between three privilegedgroups—the real estate developers, the local authorities, the commercial banks—and the othergroup of the central government and the consumers. To get rid of the situation, we have toanalyze both the current status and the causes of real estate interest groups by using theeconomic law theory from the perspective of interest groups theory, followed by enactingregulative countermeasures accordingly. That is to say, we should regard the main subjects inmarkets as several distinctive interest groups, and take corresponding legal, administrative,economic measures to separate the three privileged groups in estate market, to force the localand central governments to support the consumers in confronting with the real estate developers premised on the compliance of the market law, and to guaranteed the neutrality ofcommercial banks. Therefore, a rough balance between vendors and vendees in this marketcould be achieved, creating a market environment full of fair and effective competition. Bydoing that, the disturbance brought by the real estate distortion to soc-economic situation andthe individual’s route life could be weakened or eliminated, which would in turn make the realestate become the real driving force of China’s soc-economic progression.This paper inspects the problem existing in real estate market—multiple asymmetricposition of interest group—through specification research, literature analysis, game theoryand empirical analysis. Based on the reality and study status of regulating the interest groupsin real estate market, a workable real estate control system can be built by analyzing thecauses of the influences from interest groups on real estate and regulating interest groups fromthree layers—legislation, law enforcement and judicature.This paper is divided into three main parts:The first part is an overview of the legal regulation on real estate market from theperspective of the interest groups. Firstly, this part introduces and analyzes the concept ofinterest groups, and generalizes the concept of interest groups in line with China’s nationalconditions. Secondly, this part explores the legal basis of the regulation on the real estatemarket from the perspective of interest groups, which is conducted mainly through therelationship between state and market under the perspective of economic law, and theinfluences on real estate legislation, law enforcement and judicature given by the interests ofthe Group and its profit-driven behavior.The second part is about the survey on the status quo of the real estate market regulationunder the theoretical perspectives of interest groups. Then, it analyzes the causes of currentsituation of the real estate market regulation under the theoretical perspectives of interestgroups.The third part is about the perfection of the legal regulation on real estate market underthe theoretical perspectives of interest groups. To begin with, this part discusses the principlesin real estate market and determines the appropriate ones meeting with the national demands.Afterwards, regulation on the interest groups from the economic legislation, law enforcementand judicature is illustrated in details, as to achieve the goals identified in this article.