The Economic Effect Of The Real-estate Price Bubble

In online hot key survey of 2014, Real-estate is the most concern problem of Chinese residents. Since 2008, house prices problem become network hot words of every years. Due to long-term traditional ideas, having own housing for most Chinese is the most important purchase of one life. The 10 years from 2004 to 2014, with the rapid growth of China’s economy, the real estate market is booming. House prices were rising an average of more than 250% in our country, many cities housing prices rose by 300%,the real estate bubble problem also began to appear in the media publicity. So, how to effectively solve the problem of the Real-estate bubble to avoid similar to Japan’s property bubble burst in the 1980 s, is a problem of academic circles have been discussed in recent years.But the Real-estate market because of its special nature, not a long-distance circulation leads to the regional real estate market in China has been not only associated with each other but also have their own characteristics, this article from the provincial capital of Jiangxi province Nanchang city in recent 10 years of development, analysis whether Nanchang has the Real-estate bubble and Real-estate bubble over the extent to how affect Nanchang’s normal life.Through the supply and demand theory and bubble theory combined with literature review and empirical measurement method. First to determine degree of Nanchang city real estate price bubble, and then through the wealth effect and saving effect analysis of Nanchang Real-estate bubble economy effect for the influence of residents’ life, finally from the empirical results find ways to solve the Nanchang city’s Real-estate price bubble.