Analysis Of China's Real Estate Asset Bubble

In some districts of our country, the real estate industry has developed so fast that it gradually becomes the mainstay of economy. At the same time, the rapid economic development in our country produces a great demand for land, which result in the price of real estate soaring. Therefore, this phase facilitates speculation and real estate foam. At present, the arguments concerning the existence of real estate foam have reached a perfervid degree. As a result, it is necessary to make a correct judgment and clear understanding about the whole situation of real estate market, then make specific analysis about the reason of foam, lastly put forward measures which are suitable for solving real estate foam in our country.This article applies the method of combining theoretical analysis and demonstration study. First, it introduces the basic concept of foam, foam economy, real estate foam and foam real estate, as well as the presentation form of real estate foam and the difference between real estate foam and overheated real estate. Then it conducts practical analysis for the measurement and inspection of real estate foam in both national and regional layers by establishing index system. Accordingly it gets conclusion that our real estate industry has entered the area of severe foam since 2005, but not foam real estate, so does some key cities 'real estate industry. Analyzing the reason of foam through different views and layers, this article considers that the financial factor plays the decisive role in the fluctuation of the price of real estate. At last, having known the reason of foam, we put forward some fine suggestions how we prevent real estate foam and lead the development of real estate in a sound and rational way.This article may have the following innovations: (1) to more clearly point out the distinction between economy foam and foam economy, accordingly put forward two concepts: real estate foam (general economy foam) and foam real estate (foam economy). General real estate usually will not collapse suddenly, but will form foam real estate after years of accumulation, then its collapse will bring great harm for national economy;(2) by collecting a large amount of data, to practically infer that there exist severe real estate foam in the whole, but it has not reached foam real estate, so the foam will not collapse; (3) to analyze the reason of price soaring by the method of game theory; (4) through three views of bank credit, interest rate, foreign exchange rate, to analyze the influence of financial factor for real estate foam, and get conclusion that financial factor play decisive role in this process, which is rear in other articles; (4) to combine the international cases of dealing with real estate foam and often apply method of comparative analysis while exploring measures for solving problem of real estate foam.