Research On Institutional Causalities For The Over-High Price Problem Of Current Chinese Housing Market And Its Countermeasures

For the past decades Chinese housing market has achieved certain great development and become one of the backbones of our country's economy. But at the same time, Chinese housing market also encounters the over-high price problem, which causes a series of problems for the economy development and the inhabitant's daily life. Hence to investigate the causalities for this over-high price problem and put forward some pertinent countermeasures will be meaningful both in practice and theory.In this Research, this paper begins to summarize the available literatures on this problem, points out their contributions and shortcomings. And based on this review, this research proposes that an institutional understanding for this over-high price problem would have essential meaning. Then the paper reviews the history of Chinese housing market in detail, exhibits the actuality of this over-high price problem, justifies this problem via real market data, and illustrates its negative socio-economic influences. Next this paper presents an analytical framework for the determination of housing market price, and using this framework, this research first reviews the current status of Land Reserve institutions and Housing Loan institution, inspects their influences upon the over-high price problem respectively from a qualitative perspective, and then utilizes some real data from WeiFang housing market to test the above logical analyses, and the results indicates these relevant institutional factors have certain remarkable significant positive correlations with current housing price from the statistic perspective. And at the last, due to the incompleteness of housing market, and based on the above analyses, this paper shows the necessities of housing market regulation, and systemically puts forward some countermeasures to control current Chinese housing market from those relevant institutions respectively, thereinto, from the angle of Land Reserve institution, this research suggests that the Government should clarify the mission and objectives of Land Reserve, perfect the corresponding laws and regulations and the arrangement of land revenue division and the land purchase price, enhance the supervision of Land Reserve institution, and consummate the current land reserve and supply mechanism; and from the angle of Housing Loan institution, this paper insists that the Government should advance the reformation of interest rate vigorously to let market determine it finally, and implement High-Down-Payment-for-A-Second-Apartment institution, and at the same time, it may carry through real estate finance innovation and utilize REITs (Real Estate Investment Trusts) to broaden financing scope and further to alleviate excess speculation behavior in housing market. Finally, this paper insists that housing market is an exchange mechanism essentially and further give some other suggestions to improve it.