Shanxi Province Economic Affordable Housing Impacts On The Commodity Housing Market

Shanxi Residential Market has developed fast in a short span of twenty years. Theinvestment has increased faster and faster by years. Due to the government policy andmarket adjust, there are always complications in the process of development of ShanxiHousing Market. But Shanxi Housing Market is still a rising trend overall supply andsales. In order to adjust the social problem happened by the realty business developing,the China’s government has published a series of real estate macroeconomic regulationand control policy.The government also has constructed large numbers of affordablehousing construction, especially the economically affordable housing as the mostimportant part of social security housing system in China.However, the Economical Affordable Housing has diverted the resources of the“Pure Commodity Housing” Market. Because the government has divided largeconstruction funds and land source to the Economical Affordable Housing Market.Many consumers who are in the line with the conditions of rules inclined to by theEconomical Affordable House due to the Economical Affordable Housing constructionsold at a low profit. This made the “crowd out” effect to the “Pure CommodityHousing” Market. In recent years, the Economical Affordable Housing Market salesprice has become higher and higher what made the effect lower on the CommodityHousing Market construction.The article is based on the current status of the normal Residential Market inChina and consulting the data of nation an abroad. Further studying of the operationmechanism and function of China’s Economically Affordable Housing constructionsystem. Separating the date of Economically Affordable Housing and normalCommodity Housing Market. Use the Shanxi Province as an example to analysis therelationship between the Economically Affordable Housing and normal CommodityHousing Market. Specially analysis the data of the Economically Affordable Housingand the normal Commodity Housing Market and the “Pure Commodity HousingMarket”. Make an conclusion of the effect on the “Pure Commodity Housing Market”from the Economically Affordable Housing Market. Give the useful suggestions toimprove the Economically Affordable Housing and promote the healthy developmentof the normal Housing Market.