An Effective Regulation Research Of The Local Government On The Real Estate Market

At present, the foremost objective of Chinese local government is to promote thedevelopment of local economy, and the industry which has the largest contribution tothe local economic development is the real estate industry, due to the particularity ofthe industry and its correlation with other industries, the real estate industry hasbecome the key industry to the local development. But with the development ofChinese real estate market for several years, some problems also gradually appear suchas house price fluctuates obviously; speculation is serious; vacancy rate is higher; thedevelopment and sales are not standardized, etc. The crux of the real estate market willbring bad effects on the benefit of the following groups: local governments, real estatedevelopment enterprises, financial institutions, etc, which will make the involvedparties’ game relationship very complicated when they are chasing for their ownbenefit maximization. Under China’s current situation, the healthy development of realestate market largely relies on the government’s regulation policy, which requires thegovernment to earnestly fulfill its own regulatory responsibilities for the real estatemarket and promote the real estate market to develop healthily and orderly..The main control policies for the real estate market in China are from the centralgovernment, whether these policies can be effectively implemented and achieve thedesired effect depend on local governments’ interpretation and execution ability to thecentral policies. In the operation of the real estate market, the manager of the localgovernment mainly uses administrative means to supervise and manage the market, butthe hand of administration can’t stretch out too long, so as not to affect the objectivelaw of market development. Therefore, this article analyzes the regulatory status quo of Chinese local governments on the real estate market; finds the existing problems; putsforward system innovation of effective regulation; eventually achieves the bestcombination between administrative means and market regulation; and promotes thereal estate market to develop orderly. Firstly, this article introduces the researchbackground, significance of the selected topic, current development situation of thereal estate industry at home and abroad, as well as the meaning and property of the realestate, the status and features of the real estate market, the connotation of the realestate market and market regulation; this part is the theoretical basis of this article.Secondly, this article studies Chinese current real estate market and the currentsituation of market regulation; analyzes the main existing problems of the current realestate market in China, mainly including the asymmetry of market information,house-purchase for speculative investment is more; supervision is insufficient; localgovernment’s rent-seeking and regulation of the real estate market are lack of legalbasis, etc., which lays a solid foundation for the solutions put forward in the rest of thisarticle. Finally, on the basis of above analysis, this article puts forward many policysuggestions to promote the local government’s effective regulations on the real estatemarket in China, such as make more detailed local regulatory approaches with moreexecutive force; establish regulatory accountability system for the real estate market;perfect local government’s regulatory system of the real estate market; take variousmeasures simultaneously to regulate housing rental market; innovate the managementmode of security housing, which are also the main ideas and results of this article.