Recently, this topic has been put out in many forums in which a lot real estate experts can express their ideas about the crises in China’s real estate marketing. Many of them hold the opinion that if China is going to meet the serious financial problems in the future, it will probably root in the real estate market. However, a lot of people hold the view that the financial foam is out of the ball park, considering the ever-increasing need of a house. It is estimated that about 10 to 15 million of rural people will move and live in urban areas in China yearly and this situation will last for the next 10 years. Besides, the housing demand in urban areas is also increasing at a considerable speed. Though almost 70% of the city dwellers have their own house, they also yearn for a new house in a more modern department.
On the other hand, there is still many incontrollable crises in China’s real estate marketing. Because Chinese people are not allowed to let the money flow abroad, usually they will invest their savings in the real estate market instead of depositing the money in banks. In their minds, house purchasing is a kind of profitable investment with low crisis that maintain the everlasting attraction for the real estate market. A more complicated situation the governments are facing is that the housing price has become a sensitive political issue. It is known to all that the house owners will never hope that the devaluation of their house. However, a lot of the youngsters who have list the house purchasing in their plans feel that the house price has already surpassed their ability.
Governments has adopt a great amount of polices and measures to cut down the financial attractions of house purchasing in last 2 years. However, those polices are not quite effective, according to the record of the past two years. Therefore, there is a long way to go for the Chinese governments to find the most effective way to control the property bubble to promote a most fast-increasing economic speed.
