Housing in China

Housing in China

China now plays an important part in the world with the developing of economy, however, the development also causes many troubles due to the sudden change of the social market .Housing is one of the serious problems .Room rate is very high, because of the price of land and building materials have went up as well as the limitation of real estate.

Supply and demand is the most important reason for the high price of houses. China has the largest population in the world; it is obvious that the needs for houses are very badly. Besides, in the traditional concept of Chinese, possessing of a house is the basic for a family, no matter how expensive or cheaper the house is. Furthermore, the high price of land and building materials lead too many property developers give up investing in real estate which aggravate the tight supply of houses.

Government has a strong influence on housing. Since 1980, when the Chinese government had announced that houses can be exchange which means houses are changed into a special kind of commodity, housing has been gradually becoming a social problem, in other worlds, it could be regard as the origin of housing. Of course, houses are not only kinds of commodity but an asset. Thus, purchasing a house is like keeping an asset. Though, the purpose of this policy is not to encourage people to buy houses as investments, many people have already possessed several houses which make the housing more terrible.

International situation also has a big impact on Chinese housing. One of that is financial tsunami. Because the financial tsunami is just over and Chinese government is eager to speed up economic development, a large number of original funding for manufacturing industry poured into property market makes the funds in the real estate market become too abundant which resulted in high price of houses. In addition, RMB appreciation and expectations is a big reason. The dollar has been weakened in recent years that led to a...