Fuzhou Housing Market Research Based On Ratio Of Housing Price To Income

In recent years, housing price has become a hot social issue; housing price controlhas also drawn great attention of the central government and introduced many housingpolicies like "National Eight ","Restriction Order" and so on. Currently, the pricegrowth rate has exceeded the growth rate of GDP and CPI. About the price controlproblem, the State Council and local government repeated injunctions and implementeda package of real estate strict control policies, such as low-rent housing construction, therestriction of second-hand housing transactions, the new house purchase restrictions andother measures, but owing the poor regulations, prices are still soaring. As one of thelargest single consumption for most people in their life, rising housing prices have beenserious problems with low-income group, making it prohibitive. Beijing, Shanghai,Guangzhou and other cities, housing prices rose much faster than the average incomelevel of residents. As a second-tier cities of Fuzhou, the average price level has reacheda line of first echelon. If the housing problem cannot be resolved timely and effectively,then the wealth gap between the situations will be further highlighted, it will seriouslyaffect social harmony and stability. Based on the investigation and systematic analysisof the development of the real estate market in Fuzhou, the ratio model of housing priceto income will be introduced in the paper, and the ratio of housing price to incomewhich burdened by each income class will be analyzed, then find the real estate marketproblems in Fuzhou, and on this basis propose appropriate regulation and controlpolicies.The results show that: the recent ratio of housing price to income in Fuzhoucontinues to rise, the level has been significantly exceeded the reasonable range. In2011,urban residents in Fuzhou commodity ratio of housing price to income obviouslypresented "inverted ladder" distribution: From the lateral view, the ratio of housing priceto income with increasing disposable incomes decline, low-income families bear thehigh ratio of housing price to income; from the vertical perspective, the ratio of housingprice to income increases with the increase of housing area, the ratio of housing price toincome in70-square-meter housing is the lowest. In2011, Relative to the commodityhousing, the Fuzhou ratio of housing price to income in the secondary housing market ingeneral have a more significant decline, continued to present "inverted ladder" distribution. The secondary housing market relatively enhances the residents’ housingpurchase force. The housing demand of low-income families caused by high prices inthe housing market cannot be met. The low-income housing construction has becomethe important guarantee to solve the problems of this population.Based on the above research, the policy recommendations should be put forward,which from four aspects, respectively the housing supply, housing demand adjustment,improving effective house purchasing power and perfecting the corresponding system,in order to reach a better solution on the housing problems of Fuzhou residents.