How To Fight Against The Real Estate Bubble In China

It seems that in many fast developing countries

, real estate bubble is a kind of economic phenomenon that occurs frequently. The basic running principle in the market is a balance between supply and demand and if the balance has been destroyed, the bubble may come into being. In China, most people buy a hose because of rigid demands. In traditional Chinese opinion, when some one has come to a proper age, he or she should get married and nowadays most of the young couples do not like to or cannot live in their parents" houses, thus they need to buy new houses. This is one important reason why the real estate has become so prosperous. However, the too high price is beyond many people" purchasing power and it is believed that the bubble exists in the real estate industry.

As we all know, the real estate bubble has so much shortcomings, so we should find some measures to fight against it. The real estate bubble means scarce supply, great demand and higher and higher price. So it may lead to a disastrous result that the group of people with low income can not afford a house and a home. The lack of home will cause the lack of safety and then the panic among people. Meanwhile, many people have to spend a life-long time paying the mortgage, reducing the life quality and happiness index. In the larger and further eyesight, the real estate bubble may also weaken the competitive ability of the city and increase the difficulty that the government may meet in transforming the city. There are some methods for fighting against the real estate bubble. For the ordinary people, we should try to do some research on the real estate market and learn how to be wise in purchasing a house. As to the government, it should strengthen the control over the real estate and avoid the bubble. Effective measures must be taken to reguatle behaviors of all parties in the real estate market. At last, the real estate companies and agencies must take the responsibility to make some compensation for being one part that causes the bubble. They should learn to strike a balance between their benefits and social responsibilities.

Anyway, to maintain a long and potential development, the real estate market needs squeeze the bubble out and returns to the sensible development line.

by: annie

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