Since the policy of open and reform in 1979, China has witnessed the rapid development in its economy and attracting foreign investment. China has ranked No.2 in its total economy scale in the world. With the fast development of economy, it has given ...
Since the policy of open and reform in 1979, China has witnessed the rapid development in its economy and attracting foreign investment. China has ranked No.2 in its total economy scale in the world. With the fast development of economy, it has given rise to the great development of real estate industry.
China government carried out a lot of favorable measures to stimulate real estate industry to devote to the recovery of economy in 2008 financial crisis period. However, the stimulate measures brought a lot of problems characterized as high price and speculations in real estate market which further hurt the real economy of China.
The purpose of this research is to study and analyze the policy in real estate industry and real estate market structure and further analyzed the problems of Chinese real estate market and proposed the measures to regulate the real estate market.
Finally, this research forecasted future development of China’s real estate market as follows:
Firstly, the price of houses will gradually return to reasonable state and will show a smooth progressiv trend.
Secondly, China’s real estate market will still have a fast development in future 10 years due to urbanization and grid needs from consumers.
Thirdly, China’s real estate market will still need a lot of foreign investment. However, in order to prevent hot money speculating Chinese economy, Chinese government will strengthen the supervision on foreign investment in real estate industry.
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