Developing China

China stories in new century

We are afraid of the house prices.

I drew this picture, and I edited it.
Today in China, the most popular topic must be the rising house prices. These years, the house prices affect the hearts of most Chinese people, and the rising house prices dispel their idea of buying a house. Indeed, when few years ago people complained the high prices in the large cities in China, such as Beijing, Shanghai; unconsciously, they started to find that they can not afford the house prices in the surrounding cities. Right now, for most residents in the larger cities in China, the crazy high house prices not only deprive the contemporaries housing benefits, also kidnap the happiness of the three generations.
So, in the recent People’s Congress, Chinese Premier said, and the government must take measures to stabilize the real estate market and curb the rising house prices. The basic requirement of majority of China’s urban residents is house prices return to a reasonable level, not allow the house prices to continue rising. In their view, the house prices have already too high to buy, also it is impossible to provide the enough public rental for the large population of middle income people by the government. So, more and more middle class people become “house slave”.
In recent years, the development of the real estate market results shows that market supervision has always been a “weak.” in China’s real estate market. Because of involved interests, relevant government departments tied with developer groups together. There is always a misunderstanding, the relevant government departments misread the principal contradiction of the housing problem in China today, they thought as long as resolve the housing problem of lowest income people, China’s real estate market are going to be OK, they plan to build millions of affordable houses, which can solve the basic problem. Actually, it looks like a drop in the bucket. We should know, the current principal contradiction about China’s housing problem is the vast majority of people can not afford a house, not just about the lowest income people.
People already can see today’s housing reform in China whether it is success or failure. When the “people-oriented” thought is truly going to implement; when the relevant government departments can cut the interests between themselves and the real estate organizations. We can have hope for solving the housing problem, or not the other new policy will be futile.


March 20, 2010 Posted by | House price | 8 Comments