Why the price of housing is high in China
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Posted On :
Jul-28-2011
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Article Word Count :
455
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Housing problem has become the biggest concern of the people at present.
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As everyone knows,the price of housing is higher in China today.In many chinese cities especially in the big cities,the speed of rising in price of housing is rapid and surprising.The transition of housing's price happened not only year by year,but also even did month by month.The price of housing has deviated the income level of many common people seriously.It is awkward that a common person can not affprd a common house in China.
What reason has led to the appearance mentioned above on earth?In my opinion,there are 3 main and essential reasons about it.
First of all,the price of lad which has changed more and more higher in recent years is the most important factor.We know,the real estate includes 2 parts:the land and the housing.Correspondingly,the price of real estate includes land's and the housing's price.Now day,more and more governments depend on selling the land to keep their income.Some of them have become the governments of "lad finance".The main way of land sale is auction.That means if any real estate corporation want to defeat the other opponents,it has to pay more money to the government.The expensive land increases the costof the house,certainly,the cost will shift to the consumers at last.
Secondly,there is much more foam composition accompaines with the economy of the real estate.At present,more and more people need purchase a new house,it shows there is a good market future on the real eatate.Economist calls it is "Selling party market".So,many businessmen of the real estate unite a alliance which can control the market as a puppet.This kind of benefit community is very strong,because it even maybe includes the government.The community usually can decide when the price should be improved and what proportion should be used on every rise in price.Thereby,rises in price of the real estate often happened instead of normally,regularly and orderly.Although the foam only,people can not perforate it easily.
Thirdly,the government is short of the function what it should have.In July 1998,chinese center government declared,it would establish a wonderful housing guarantee system.In the system,many economy suitable housing and cheaper hire housing wew provided for people.It wae a pity that only lee people had enjoyed the preferential housing in lasted 10 years.More people had to choose the expensive commercial housing.The government neglected its duty,the people had to endure the result.Take this point,the government should be partly in charge of the price of housing.
Allow of no doubt,the price of materials rised can also improved the price of housing.Similar reasons like this are too much.In a word ,the season influences the price of housing is complex.But there is a simple fact,Chinese government must be attch importance to more and more higher price of housing.
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Article Source :
http://www.articleseen.com/Article_Why the price of housing is high in China_69474.aspx
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