The Study Of Real Estate In East Asian And The Edification To China

Real estate industry is essential for the promotion of inside need and the development of the whole economy. We should avoid overheat of real estate industry when promoting the healthy development, especially to avoid serious real estate bubbles. Considering points above, the deep study of real estate is of great value both in theory and practice.This article includes five parts. The first part explains the definition of real estate bubble, and describes real estate thoroughly, then compares the economic bubble and bubble economy, and analyzed the difference and similarity of the two definitions. Then studying the materials of overseas scholars'theories, it suggests asset bubble is a phenomenon of asset movement and a continuous rising departure from the real price basis. The second part analyzed plenty of materials and describes East Asia real estate bubbles. The study subjects are Japan, Korea and Southeast Asia countries, and it concludes seven reasons for real estate, that are the specialty of real estate, unreasonable prospect, scarcity of land, speculation demand, loaning tendency for banks and financial system, Information Asymmetry,and misappropriate intervention of government.The third part analyzed the impact of real estate bubble for East Asia, specialize in the influence in Japan, Korea and Southeast Asia. Firstly, financial system is destroyed seriously and bad debts increased; secondly it decreased productivity and blocks the development of enterprises and investment. Finally, it wasted a great deal of resource; pulls down the consumption level and increased the unemployment rate.The forth part is the edification to China. The establishment and development of Chinese market economy system makes the social resource collocate more effectively. With this macro background, real estate could easily form the bubbles.As mentioned above, we should pay more attention to the management of financial system and control the speculative capital to be away from the real estate market. So we should control the rate of real estate loan and mortgage, and investigate mortgage condition strictly, in order to prevent too much capital staying in the real estate market. Center Bank should utilize the monetary policy carefully. Government should neither intervene the market too much, nor let the economy alone. Besides, government should get well alone with local banks and increase the independence of banks.